Home and Garden Direct closes, files for bankruptcy

A 38,000-square-foot home products showroom that opened in late August closed its doors last week.

Home and Garden Center Direct founder Steve Ploussard says he filed for Chapter 7 bankruptcy protection

Thursday after months of negotiations with the California-based landlord of Airport Square, home to CostCo, failed to yield lease concessions.

The economic turndown sank the concept, says Ploussard, who with a partner, had self-funded the company. The center had 85 display companies under contract.

"I have two sets of customers," he said. "Contractors who leased space to show home remodeling wares and the homeowners wanting remodels. But consumers are hunkering down and not doing projects. In turn, almost half of our exhibitors could not pay us, resulting in HGC not being able to pay our rent."

In hindsight, he says, "The concept is sound. Five companies in the U.S. are trying to copy us. Similar centers survive in Phoenix and Salt Lake City. If I ever did resurrect the concept again it would be in a town of over one million."

Exhibitor Gordon Hinkel, general manager at Basalite in Carson City, says, "I think it's a good concept. But it was the worst possible time in American history to try a new and creative concept."

"And, I question whether the local demographic of half a million people is enough to support it. A million-count marketplace needed."

Exhibitor Mark Sexton, owner of Renderings Faux & Decorative Painting, Inc.

in Reno says, "At first there was a lot of traffic, excitement, interest. We had a lot of response.

It kept me quite busy following up with all the leads. But the quality of those leads was disappointing. Out of 300 leads, we got only five return phone calls. It's perplexing to me why someone would register so much personal information, walk through and scan a bar code requesting more information, but then not respond."

Sexton had signed a 12-month contract with the center to pay $1,000 monthly on a quarterly basis. "I spent three times more than

I earned,' he says.

"The last couple of months, we got only one or two leads per month. And those had bad phone numbers and emails. It fell off a cliff."

Exhibitor Monica Radke, owner of Radke Tile and Marble in Carson City, says, "Although we got a lot of exposure, and many people said they liked our work, it didn't generate enough business to justify the cost.

Lead to sales conversion was poor."

An e-mail Ploussard sent to Home and Garden Center Direct tenants to inform them of the closure said,

"From the start we gave it 110 percent every day. I want to first thank our staff for all their hard work and

dedication for trying to make this place go. But old cliches sure ring true, 'timing is everything' and 'cash is king.'"