Joann supplier going out of business
Citing Joann's downfall and U.S. tariffs, Design Group Americas filed for Chapter 11 protection Thursday and will wind down. Parent IG Design Group sold the business in May to Hilco Capital Group for $1, and IG's non-U.S. affiliates are not part of the bankruptcy.
The company, whose portfolio includes sewing pattern names like McCall's, Simplicity, Vogue and Butterick, as well as party supply, crafting and home decor brands, said it has an agreement for about $53 million in debtor-in-possession financing from a Hilco affiliate.
Design Group Americas will put many of its brands up for sale while 'winding down its domestically manufactured woven ribbon products business and supporting assets,' per the company's press release.
For a lot of people who picked up sewing or crafting during the pandemic, their project is barely noticeable in the rear-view mirror — a major reason that Joann itself failed to revive its fortunes following its March 2024 bankruptcy. In January, Joann filed under Chapter 11 for the second time in less than a year, this time in order to go out of business.
Last month rival craft store Michaels snapped up Joann's IP and has boosted its fabric arts assortment. But Joann's disappearance is nevertheless having consequences downstream: in court documents, DGA cites 'macroeconomic challenges, coupled with specific setbacks such as the bankruptcy and liquidation of one of the Debtors' major customers, Jo-Ann Stores, LLC,' as having 'severely impacted [its] sales performance and revenue.'
Trade tariffs imposed this year also 'increased operational costs, affected pricing strategies, and contributed to reduced customer orders,' the company said.
Before its sale to Hilco, DGA was the IG Design Group's U.S. operation, with some supporting operations also based in India, Hong Kong, China, the U.K., Mexico and Australia. For the financial year ended March 31, 2024, DGA reported audited revenue of $500.3 million and an operating profit before tax of $4.9 million. As of Sept. 30, 2024, DGA had un-audited net assets of $245.4 million, including intangibles and deferred tax assets of $94 million.
At the time of the sale, IG Design Group Chair Stewart Gilliland said the company had 'worked tirelessly over a number of years to rebuild DG Americas into a more profitable and sustainable part of the Group' but that 'numerous external factors,' including shrinking demand for the category, impeded its progress.
'Compounding this, in light of recent events in North America and the evolving tariff situation, it has become clear that the headwinds facing the division are untenable,' he also said, adding that offloading the U.S. business was necessary to protect the overall company.
Last week, DGA said it had $8.2 million or so of accessible cash-on-hand, which wasn't enough by itself to support its sale and wind-down. The company's portfolio boasts more than 50 product categories and brands, including some over a century old.
Recommended Reading
KidKraft files for Chapter 11 bankruptcy
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
2 hours ago
- Business Insider
India ditches Russia for Africa's largest oil producer in major supply shake-up
India's state refineries are increasingly relying on Nigerian crude oil to satisfy their supply requirements, signaling a significant change in global energy trading patterns. Indian state refineries are increasingly sourcing crude oil from Nigeria amidst global trading shifts. By late 2025, over two million barrels of Nigerian oil are set to arrive in India. India's shift from Russian to alternative sources is influenced by political pressures, notably from the US. More than two million barrels of Nigerian oil are projected to arrive in India between September and October 2025, as political pressure from the US forces the South Asian country to reduce its imports from Russia. According to industry insiders, the Indian Oil Corporation (IOC) recently purchased one million barrels of Nigerian Agbami oil for September delivery through a tender awarded to the global trading firm Trafigura. The move is part of a larger buying frenzy by Indian refiners, which have obtained millions of barrels from non-Russian sources in recent weeks. Bharat Petroleum Corporation Limited (BPCL), India's second-largest state refiner, also made spot purchases while negotiating for September deliveries, as seen in the Punch. The South Asian market purchased one million barrels of Angola's Girassol, one million barrels of US Mars, three million barrels of Abu Dhabi Murban, and two million barrels of Nigerian crude for delivery in September and October. This shift comes after Indian state refiners ceased purchases of Russian crude in late July, citing a delay advocated by US President Donald Trump. Since Russia's 2022 invasion of Ukraine, India has been one of the few big purchasers of cheap Russian oil, taking advantage of reduced costs while escaping the Western boycott. This policy kept Indian refiners mostly out of the spot market for other suppliers, until recently. Nigeria's acquisitions signal an increase in sales to Asia, a sector long dominated by Middle Eastern oil producers. Nigerian crude grades, recognized for their low sulfur content, are ideal for India's refineries, which generate vast amounts of gasoline and diesel for domestic and export markets. However, the development comes with a twist, which industry analysts refer to as oil trade irony. Even though Nigeria sells millions of barrels of petroleum to India, the Dangote Oil Refinery, Africa's largest refinery, located within Nigeria, is increasingly purchasing crude from the US.
CNBC
3 hours ago
- CNBC
Gold slips as investors focus on U.S.-Russia talks on Ukraine
Gold prices slipped on Monday as market participants focused on U.S.-Russia talks on the war in Ukraine, and July inflation data that could offer more insight into the Federal Reserve's interest rate outlook. Spot gold was down 0.6% at $3,378.49 per ounce, as of 0521 GMT, after hitting its highest since July 23 on Friday. U.S. gold futures for December delivery dropped 1.4% to $3,441.20. "Cooling geopolitical tensions surrounding the war in Ukraine saw gold fall further, following Friday's announcement that President Donald Trump will meet with Vladimir Putin on the U.S. soil," City Index senior analyst Matt Simpson said. Trump said on Friday he will meet Russian President Putin on August 15 in Alaska to negotiate an end to the war in Ukraine. Focus is also on U.S. consumer price data due on Tuesday, with analysts expecting the impact of tariffs to help nudge the core up 0.3% to an annual pace of 3.0% and away from the Fed's target of 2%. "A hot print could further strengthen the dollar and cap gains in gold, though I suspect support will remain in place overall as investors seek to scoop up discounts," Simpson said. Recent softer-than-expected U.S. jobs report boosted bets for a Fed rate cut in September. Markets imply around a 90% probability of a September easing, and at least one more cut by this year-end. 0#USDIRPR Non-yielding gold thrives in a low-interest-rate environment. Also on the radar are Sino-U.S. trade discussions as Trump's August 12 deadline for a deal between Washington and Beijing loomed. Meanwhile, COMEX gold speculators increased net long position by 18,965 contracts to 161,811 in the week to August 5. Elsewhere, spot silver fell 0.5% to $38.13 per ounce, platinum XPT= slipped 1.1% to $1,317.90 and palladium gained 0.1% to $1,127.37.
Business Insider
3 hours ago
- Business Insider
Africa's largest oil producer surpasses Russia to secure India's crude supply deals
India's state refineries are increasingly relying on Nigerian crude oil to satisfy their supply requirements, signaling a significant change in global energy trading patterns. Indian state refineries are increasingly sourcing crude oil from Nigeria amidst global trading shifts. By late 2025, over two million barrels of Nigerian oil are set to arrive in India. India's shift from Russian to alternative sources is influenced by political pressures, notably from the US. More than two million barrels of Nigerian oil are projected to arrive in India between September and October 2025, as political pressure from the US forces the South Asian country to reduce its imports from Russia. According to industry insiders, the Indian Oil Corporation (IOC) recently purchased one million barrels of Nigerian Agbami oil for September delivery via a tender given to global trading firm Trafigura. The move is part of a larger buying frenzy by Indian refiners, which have obtained millions of barrels from non-Russian sources in recent weeks. Bharat Petroleum Corporation Limited (BPCL), India's second-largest state refiner, also made spot purchases while negotiating for September deliveries. The South Asian market purchased one million barrels of Angola's Girassol, one million barrels of US Mars, three million barrels of Abu Dhabi Murban, and two million barrels of Nigerian crude for delivery in September and October. This shift comes after Indian state refiners ceased purchases of Russian crude in late July, citing a delay advocated by US President Donald Trump. Since Russia's 2022 invasion of Ukraine, India has been one of the few big purchasers of cheap Russian oil, taking advantage of reduced costs while escaping the Western boycott. This policy kept Indian refiners mostly out of the spot market for other suppliers, until recently. Nigeria's acquisitions signal an increase in sales to Asia, a sector long dominated by Middle Eastern oil producers. Nigerian crude grades, recognized for their low sulfur content, are ideal for India's refineries, which generate vast amounts of gasoline and diesel for domestic and export markets. However, the development comes with a twist, which industry analysts refer to as oil trade irony. Even though Nigeria sells millions of barrels of petroleum to India, Africa's largest refinery, located within Nigeria, is increasingly purchasing crude from the US.
