Hi Holly! I have a couple of Phals. that I got that were looking like this over a year ago. One from Wal Mart, and the other from Lowe's.
As soon as they came home, I repotted into a soaked bark mix. They hated it, and became progressively worse until after about 8 or 9 months, each had 2 leaves, and one was a new leaf that had grown and was severely stunted (they really have grown identically). I depotted to find that each had grown 2 short roots, and that's it the rest were just gone. I repotted them into sphag, and watered them only when they became almost completely dry in the center. In 2 months they have grown several new roots, and (at the same time) have just shot out some new normal looking leaves.
Ross, sorry to disagree with you here
.....please don't discount sphag for these. I have found that Phals do well in sphag as long as the watering comes when it is almost completely dry. My Phals, for the most part, if they fit into a 5 inch pot or below go into sphag. If they are in larger than a 5 inch pot I put them into bark. I believe that when they are in less than a 5 inch pot, bark just dries way to fast for them. I wish you luck with your plant, I am sure with some tlc it will flourish.
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