Irvine-based Hines Horticulture Inc. filed bankruptcy protection under Chapter 11 of the United States Bankruptcy Code, in the United States Bankruptcy Court in Wilmington, Delaware. It has listed debt of as much as $500 million and assets of less than $50,000.

According to the company, its bankruptcy filing was a result of the economic and housing downturn, high costs for materials and fuel, poor weather and pressure for lower prices from customers.

The company also sought the court’s approval to enter into a stalking-horse agreement with Black Diamond Capital Management LLC, to sell all its assets. Hines has already agreed to the terms of an asset purchase with an affiliate of Black Diamond Capital Management, LLC. The latter has agreed to serve as a stalking horse bidder for substantially all the assets of Hines during the sale process.

“The company’s board of directors determined that a chapter 11 filing was a necessary and prudent step and the best way to maximize value for all stakeholders in the company,” Hines said.

Hines is an operator of commercial nurseries which sell plants, shrubs, flowers and container-grown plants to stores, such as Wal-Mart, Home Depot and Lowe’s. The company also produces peat moss for greenhouses, nursery growers and golf course developers.

It is one of the largest commercial nursery operations in North America, which operates in total four states. Hines sells its products to more than 1,180  retails and commercial customers. It runs seven nurseries.

Hines shares were down about 35 percent on Thursday on the Pink Sheets exchange.

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