Design Group Americas Secures Court Approval for Asset Sales Across Multiple Business Segments
The U.S. Bankruptcy Court approved the sale of Design Group Americas' assets across its Stationery, Gift, Sewing, and Play segments to multiple buyers, ensuring business continuity and maximizing value for stakeholders.
The U.S. Bankruptcy Court for the Southern District of Texas has approved the sale of certain assets of IG Design Group Americas, Inc. and its domestic subsidiaries across the Company's Stationery, Gift, Sewing, and Play segments. The court-approved transactions include the sale to WIPHA Holdings, LLC of assets in both the Gift and Stationery business segments, including Berwick poly ribbon and bows, Paper Magic Group, and Blumenthal, which ensures ongoing operations at the Company's Berwick facility.
The Patterns business within the Sewing segment will be sold to the existing management in partnership with Rubelmann Capital. Advantus Corp. will acquire assets in the Play and Sewing business segments, including Anker Play Products, Perler, Eureka, Stickerfitti, Dudley's, Boye, Dimensions, and Paintworks. Carousel Worldwide will purchase assets in the Stationery business segment, including the Lang dated products and calendar business.
CBC Group, Inc. will acquire assets in the Stationery business segment, including the C.R. Gibson and The Gift Wrap Company brands. American Greetings Corporation will purchase certain machinery, equipment, and other assets used to manufacture and distribute gift wrap located at the Company's Byhalia, MS facility. These value-maximizing transaction agreements allow certain areas of the business to continue operating under new ownership.
Chief Executive Officer Sue Buchta stated that these agreements demonstrate the importance of the various business segments and create opportunities for these brands to thrive going forward. Chief Strategy Officer Brett Anderson emphasized that this outcome represents the best path forward to maximize value for DGA's assets and minimize disruption for customers and partners. The Company will work with buyers to transition ownership, with all transactions expected to close by year-end, subject to customary closing conditions.