Jim McCann, the founder of Long Island-based 1-800-Flowers, announced today that his is stepping down as CEO of the well-known floral and gift retail and distribution company – a position he has held for nearly 50 years – although he will continue to serve as chairman.
Adolfo Villagomez – former CEO of housing rental firm Progress Residential – has been named as McCann’s successor, and his goal will be to oversee a long-needed technological update for the company, an issue that has contributed to falling business and lowered revenue in the form of missed orders.
The issues with 1-800-Flowers’ order system have became so pronounced, according to reports, that it resulted in the company reporting a net loss of $178 million in the most recent quarter; over the past holiday season alone, cancelled orders led to intense customer dissatisfaction and cost the business $20 million in sales.
“The best thing I can do is fire myself and hire someone who’s much more skilled than I am in the areas that are important to the company going forward,” McCann said of his departure.
Among the anticipated tech upgrades for 1-800-Flowers under Villagomez is the implementation of Artificial intelligence.
This run marks McCann’s second tenure as CEO; he originally had stepped down in 2016, with his younger brother taking up the role. However, following health issues, the elder McCann once again took over as CEO in 2023, although only with the goal of finding an eventual replacement.
McCann originally got into the floral business by purchasing flower shops in Manhattan in the 1970s. He later came up with the idea to build a nationwide flower delivery fulfillment service and later re-branded the company “1-800-Flowers” after purchasing a nearly bankrupt Texas company that owned the eponymous phone number.
Forr a number of years McCann was the face of the well-known brand, often appearing in television commercials for 1-800-Flowers during peak holiday season periods. Over time the company established a wide network of fulfilling florists across the country, as well as numerous acquisitions and partnerships – including with Martha Stewart Living Omnimedia – to grow and diversify their reach and offerings.
