Change or lose all, Interflora warns

THE boss of Interflora faces a crisis board meeting over plans to turn the trade association into a traditional company and attract venture capital investment.

Steve Richards, former boss of Allsports and Manchester United's merchandising arm, fears that unless Interflora modernises, it will be further damaged by supermarkets and High Street giants such as Marks & Spencer and Next.

He has just completed a two-month tour of the UK and Ireland, talking to about half of Interflora's 1,800 members. Each is an individual owner, most with one shop and others with several.

Interflora, formed 75 years ago, is essentailly a club for florists where each member agrees to deliver orders placed at other members' shops.

On 9 June, the board will receive the results of an NOP poll that will show whether there is sufficient support to push through a resolution to turn the loose democratic association into a modern business.

Richards, the third Interflora chief executive in as many years, has warned the association's florists that rivals are stealing their business.

'Interflora can deliver in three hours and you get a hand-arranged bouquet, not a box of flowers chucked together on an assembly line by minimum-wage employees,' he said. 'But rivals will win unless we develop the product.

'Interflora could be a modern database marketing business - sending reminders to customers of important dates coming up, adding things like champagne to the traditional bouquet.

'It could also save money by securing discounts on utility bills, mobile phones and even the purchasing of flowers.'

There is one hitch, according to Richards. 'Interflora is a trade association more akin to a golf club than a plc,' he said. 'It is very democratic - one member, one vote - but we can't borrow money or get investment and we can't get anything done. Members are asked to give up some control in return for a new future.' This could involve a windfall for florists at some stage.

A fixed number of shares would be given to each member but larger shops and those that have been Interflora members for longer would receive more.

Of those attending Richards' roadshows, about 90% accept the need for drastic change early soundings show. But only about 60% support the board's specific proposals - and 75% support is needed for change to go ahead.

Florists who did not attend meetings have little appetite for change. In 1997, the last time an attempt was made to modernise, rebels ousted the board.

But Richards said he was determined not to give up, even if the figures have not improved by the time the board meets. 'It will be back on the road again,' he said. 'It is the hustings. I will go to each shop if that is what it takes.'