(MEDFORD, Ore.) -- Harry & David Holdings Inc., a retailer known for its gift baskets, Fruit of the Month Club and gourmet treats, announced Monday it has filed for Chapter 11 bankruptcy protection.
The Medford, Oregon-based company said it reached an agreement with about 81 percent of its senior noteholders on a reorganization plan that will get rid of the majority of the company's debt. The noteholders also vowed to support a $55 million rights offering that will provide the company with the adequate amount of equity financing to come out of the bankruptcy.
Despite the bankruptcy filing, Harry & David said it will continue to conduct business online and at its stores nationwide.
Copyright 2011 ABC News Radio