Grow More faces $925,000 judgment for wrongful termination
By MATEUSZ PERKOWSKI
Capital Press
A California agricultural fertilizer and chemical company has filed for bankruptcy protection, partly to forestall paying a legal judgment of nearly $1 million.
Grow More Inc., of Gardena, Calif., is seeking Chapter 11 bankruptcy protection, which allows companies to remain operational while preventing their creditors from seizing assets.
The company manufactures liquid fertilizers, rooting hormones and other products aimed at enhancing plant growth, with nearly $18 million in revenues in 2011, according to bankruptcy documents.
Although Grow More’s revenues increased by nearly 18 percent in 2011, the company’s earnings before taxes, interest and other accounting adjustments fell since last year from $2.7 million to $1.7 million.
About half of the manufacturer’s products are distributed overseas, and the company’s “sales have been negatively impacted by the global economic downturn,” according to a court document.
Grow More also said that a $925,000 judgment was entered against the company in November.
The plaintiff in that case, Rene Coello, has since obtained a “writ of execution” that would allow law enforcement officers to seize and auction off the company’s property to satisfy the judgment.
Coello obtained a favorable jury verdict in a lawsuit he filed against Grow More last year, alleging wrongful termination.
A statement released by his attorney claimed the company fired Coello, a mechanic’s assistant, after an on-the-job knee injury. Coello is also seeking more than $500,000 in attorney fees.
Grow More has requested a new trial in the case and has filed for bankruptcy protection “to preserve the value of the company’s assets for the benefit of all creditors (and) to avoid preferential treatment of Mr. Coello compared to other creditors,” the company said in a court document.
According to bankruptcy documents, Grow More owes $280,000 to secured creditors and nearly $1.4 million in unsecured claims, which includes the $925,000 won by Coello.
The company, which employs 58 employees, was founded more than 90 years ago.
Initially, the company — then named National Chemical NACCO — supplied photographic chemicals to the Hollywood movie industry, but then diversified into other chemical ventures.
In the late 1980s, its name was changed to Grow More as the company focused on the farming and retail garden markets.

*This story has been corrected.