Design Group Americas Voluntarily Files for Chapter 11 Protection, Initiates Sale Process Aimed at Maximizing Value Through Going Concern Transactions

Associated Press

04-07-2025

BERWICK, Pa.--(BUSINESS WIRE)--Jul 3, 2025--
IG Design Group Americas, Inc. and its domestic subsidiaries (collectively, 'DGA' or the 'Company'), a design, manufacturing, sourcing, and distribution company of branded and private label consumer products, announced today that it has voluntarily filed for chapter 11 relief in the United States Bankruptcy Court for the Southern District of Texas (the 'Court') to facilitate a court-supervised marketing and sale process pursuant to section 363 of the Bankruptcy Code.
The Company intends to pursue a value maximization strategy by engaging with buyers who are interested in purchasing certain of the Company's business segments as a going concern, while concurrently winding down its domestically manufactured woven ribbon products business and supporting assets.
DGA includes over 50 product categories and brands, some of which were established over a century ago. Like many companies in the consumer products sector, DGA has been navigating a challenging operating landscape for several years, compounded by the loss of a major customer, who entered liquidation and significantly impacted DGA's revenue as well as new trade tariffs imposed in 2025 that increased operational costs, affected pricing strategies, and contributed to reduced customer orders. The Company's decision to pursue an in-court process was driven by liquidity constraints, substantial working capital requirements, and the seasonal nature of significant portions of its business.
'Following DGA's sale to an affiliate of Hilco Capital Group, we have worked diligently with our advisors to evaluate the optimal path forward for the business,' said Sue Buchta, Chief Executive Officer of DGA. 'We enter the court-supervised sale process in dialogue with multiple interested parties for certain of our business segments as a going concern and intend to leverage chapter 11 to maximize the value of our assets. We thank our employees, customers, and partners for their support and will work diligently to minimize any potential impact during the process.'
Additional Information about the Court-Supervised Process
DGA has secured an agreement for approximately $53 million in committed debtor-in-possession ('DIP') financing from an affiliate of Hilco to support its value maximizing strategy throughout its Chapter 11 cases, subject to Court approval.
Additionally, to uphold its commitments to its stakeholders, DGA has filed several customary 'first day' motions. These motions, upon approval by the Court, will provide authorization for the continued payment of employee wages and benefits arising under programs that were in effect as of the petition date, the maintenance of certain customer programs, payments to certain critical vendors for prepetition amounts owed, payment to vendors for amounts owed on post-petition goods and services delivered to the Company, and other relief measures standard in these circumstances.
DGA's non-U.S. affiliates are not part of the chapter 11 cases and will continue to operate while the Company considers the impact of asset sales and the optimal plan to maximize the value of the interests it holds in those subsidiaries.
Additional information is available at https://cases.ra.kroll.com/DGA. Stakeholders with questions may call the Company's claims agent Kroll, toll-free at [phone] (U.S. and Canada) or [phone] (International), or email at [email protected].
Advisors
Latham & Watkins LLP is serving as legal counsel, Huron Consulting Group LLC is serving as financial advisor and investment banker, and C Street Advisory Group is serving as strategic communications advisor to DGA.
About DGA
Design Group Americas (DGA) is a diverse group of companies operating across multiple regions, categories, seasons, and brands. The company employs over 1,400 people and works with customers in the US and around the world, with offices and operations in the United States, UK, Australia and Asia. DGA products are found in over 100,000 retail outlets internationally, with products reaching millions of consumers of all ages. Design Group Americas creates, designs, and manufactures products that help the world celebrate life's special occasions. They are proud to serve the best retailers around the globe with a complete end-to-end service from design to distribution.
Design Group America's products are found within six core categories:
Gift packaging: DGA is one of the world's largest producer of celebrations products, including gift wrap, gift bags, ribbons & bows
Party: Party-ware, balloons and accessories
Ribbon: Craft, décor, ribbon for branded or floral business
Craft: Craft and creative play products that empower consumers of all ages to express themselves, learn new skills, as well as create individual looks, unique gifts and keepsake items
Stationery: Wide range of stationery products for consumers of all ages, for use in education, commercial, and home settings including both standard and fashion ranges
Homeware/Décor: Seasonal and everyday décor such as florals, holiday signs, tabletop décor and ornaments
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CONTACT: Media
[email protected]
KEYWORD: UNITED STATES NORTH AMERICA PENNSYLVANIA
INDUSTRY KEYWORD: RETAIL OTHER RETAIL HOME GOODS MANUFACTURING SPECIALTY OTHER MANUFACTURING OFFICE PRODUCTS
SOURCE: IG Design Group Americas, Inc.
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PUB: 07/03/2025 07:26 PM/DISC: 07/03/2025 07:26 PM
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