Design Group Americas Seeks Chapter 11 Protection to Facilitate Business Sale

IG Design Group Americas, Inc. and its domestic subsidiaries have voluntarily filed for chapter 11 relief in the United States Bankruptcy Court for the Southern District of Texas. This strategic move aims to facilitate a court-supervised marketing and sale process under section 363 of the Bankruptcy Code, with the intention of engaging buyers interested in purchasing certain business segments as a going concern. The company also plans to wind down its domestically manufactured woven ribbon products business and supporting assets.

The decision comes after years of navigating a challenging operating landscape, exacerbated by the loss of a major customer and new trade tariffs imposed in 2025, which increased operational costs and reduced customer orders. DGA has secured approximately $53 million in committed debtor-in-possession financing from an affiliate of Hilco Capital Group to support its strategy throughout the chapter 11 process, pending court approval.

Sue Buchta, Chief Executive Officer of DGA, emphasized the company's commitment to maximizing the value of its assets and minimizing impact on employees, customers, and partners during this transition. DGA's non-U.S. affiliates remain unaffected by the filing and will continue operations as the company evaluates the impact of asset sales on these subsidiaries.

Additional details about the court-supervised process and DGA's efforts to uphold commitments to stakeholders are available here.