Business: Harry & David files for Ch. 11 protection

MEDFORD, Ore. (AP) -- Harry & David Holdings Inc., a provider of fruit baskets and other gifts, is filing for Chapter 11 bankruptcy protection. Harry & David has been struggling as consumers cut back on their spending in the weak economy. It relies on discretionary spending that's often the first to get cut from household and business budgets. The 75-year-old retailer expects to continue operating during the reorganization process. The company ships fruit, nuts, baked goods and other snacks to customers around the world. It operates stores in 38 states and a website. It reported in January that revenue during the key holiday quarter fell nearly 2 percent to $262 million. Last month the company cut about 100 jobs and named Kay Hong as its interim CEO. She replaced Steven Heyer, who remains as chairman. Hong is a managing director at Alvarez & Marsal, which is helping Harry & David with its restructuring. Harry & David said holders of about 81 percent of its senior notes have agreed to vote for the reorganization plan and exchange their notes for common stock. Published: Tue, Mar 29, 2011