Freddie’s Flowers, a subscription-based flower delivery service, has reduced its workforce by over a quarter. This decision follows two consecutive years of declining revenues.
- The company reported an 8.2% drop in revenues for the year ending August 2024, amounting to £35.7 million.
- Pre-tax losses have been halved from £2 million to just under £1 million as the company focuses on profitability.
- The firm halted its operations in the Netherlands and California, redirecting focus to the UK and Germany.
- Founder Freddie Garland’s strategic initiatives, including unique ‘flower bonds’, aimed to spur growth, yet economic challenges persist.
Freddie’s Flowers, located in London, has announced a significant reduction in its workforce, cutting over a quarter of its staff. The flower subscription company now employs just over 200 individuals, down from 271 the previous year. This constitutes a near 60% reduction compared to 2022 figures, a move made in response to ongoing revenue declines.
In the fiscal year ending August 2024, the company reported an 8.2% decrease in revenues, totalling £35.7 million. This follows a more than one-third decrease compared to the revenue levels seen in 2022. Despite this, there was a notable improvement in financial health, with pre-tax losses reduced significantly from £2 million to just under £1 million, signalling a strategic shift towards prioritising profitability over growth.
According to the company, ‘Following the challenging economic environment since 2022, our focus has shifted to profitability over growth’. This shift reflects Freddie’s Flowers’ strategic aim to achieve a break-even point while continuing to invest in potential growth initiatives. The firm’s optimism about future growth is tied to these strategies, aimed at ensuring long-term financial stability while maintaining strict attention to profitability.
In 2020, Freddie’s Flowers attracted attention for its innovative bond offering called ‘flower bonds,’ a creative financing solution that allowed regular customers to invest in the company through debt instruments offering attractive returns. Despite the initial aim to use proceeds from these bonds for international expansion into regions such as Germany, the Netherlands, and California, the company has since retracted from the latter two markets, concentrating its efforts on Germany and the UK instead.
The company’s roots trace back to when founder Freddie Garland established the business in a humble gazebo in his parents’ backyard after leaving his job at the organic food group, Abel & Cole. The business, strengthened by a $60 million funding round in August 2021, continues to navigate challenges posed by changing consumer habits post-pandemic.
Freddie’s Flowers remains committed to navigating economic challenges while focusing on profitability and strategic market presence.
