Anyone have problems with Holly-tone molding?

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peony8 Westford, MA(Zone 6a) May 22, 2010

I've been using Holly-tone for years. Two weeks ago, I sprinkled the usual amount around all my broadleaf evergreen shrubs and various other acid-loving plants and trees. This weekend I noticed profuse areas of grey fuzz around the hydrangeas, hollies, kalmia, and leucothoe in my front yard. I didn't put it all together until I was weeding out back and began to notice that same fuzz was growing everywhere had I put down the Holly-tone.

This has never happened before, and I am not sure what to do. It's not even like it has rained an unusual amount since I fertilized, so no excess dampness.

Should I rake it up and discard the fuzzed-up mulch?
Should I put down new Holly-tone?
Should I contact the garden center where I purchased it and tell them they sold me bad stuff?

Does anyone have any idea why the Holly-tone got moldy? My gut tells me I bought a bag with a tear in it (which I didn't notice) and the granules inside had been compromised.

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