Design Group Americas Receives Court Approval for Asset Sales Across Multiple Business Segments

The U.S. Bankruptcy Court for the Southern District of Texas has approved the sales 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 sale to the existing management of the Company’s Patterns business, in partnership with Rubelmann Capital, involves certain assets related to the Patterns business within the Sewing segment. Additionally, the sale to Advantus Corp. includes assets in the Play and Sewing business segments, covering Anker Play Products, Perler, Eureka, Stickerfitti, Dudley’s, Boye, Dimensions, and Paintworks.

Further transactions approved by the court comprise the sale to Carousel Worldwide of assets in the Stationery business segment, including the Lang dated products and calendar business, and the sale to CBC Group, Inc. of assets in the Stationery segment, including the C.R. Gibson and The Gift Wrap Company brands. The sale to American Greetings Corporation involves certain machinery, equipment, and other assets used to manufacture and distribute gift wrap located at the Company’s Byhalia, MS facility.

Sue Buchta, Chief Executive Officer, stated, "We are pleased with the results of the marketing and sale process as we reached value-maximizing transaction agreements that will allow certain areas of our business to continue operating under new ownership." She added that these agreements demonstrate the importance of the various business segments and create an opportunity for the brands to thrive moving forward, expressing gratitude for the support of employees and partners throughout the process.

Brett Anderson, Chief Strategy Officer, noted, "Following a comprehensive, court-supervised marketing and sale process, we have determined that this outcome represents the best path forward to maximize value for DGA’s assets and minimize disruption for the Company’s valued customers and partners." He emphasized that the court’s approval affirms months of careful planning and constructive engagement with interested parties, setting the stage for a smooth transition.

The Company will collaborate with the buyers to transition ownership of the businesses and related assets, with all transactions expected to close by year-end, subject to customary closing conditions. DGA remains focused on serving its customers during these transitions. Legal counsel for the transactions is provided by Latham & Watkins LLP, with Huron Consulting Group LLC serving as financial advisor, Huron Transaction Advisory LLC as investment banker, and C Street Advisory Group as strategic communications advisor.