Design Group Americas Secures Court Approval for Asset Sales Across Multiple Business Segments
TL;DR
IG Design Group Americas maximizes asset value through court-approved sales to multiple buyers, ensuring business continuity and competitive positioning in stationery, gift, sewing, and play segments.
The U.S. Bankruptcy Court approved six specific asset sales across DGA's business segments to different buyers, with transitions expected by year-end under customary closing conditions.
These sales preserve operations and jobs at facilities like Berwick, allowing beloved brands to continue serving millions of consumers and celebrating life's special occasions worldwide.
Diverse brands from Berwick ribbons to Perler beads and American Greetings machinery find new homes through strategic court-approved transactions ensuring their continued creative legacy.
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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 existing management of the Company's Patterns business, in partnership with Rubelmann Capital, will acquire certain assets related to the Patterns business within the Sewing segment. Additionally, Advantus Corp. will purchase assets in the Play and Sewing business segments, including Anker Play Products, Perler, Eureka, Stickerfitti, Dudley's, Boye, Dimensions, and Paintworks.
Carousel Worldwide will acquire certain assets in the Stationery business segment, including the Lang dated products and calendar business. CBC Group, Inc. will purchase assets in the Stationery business segment, including the C.R. Gibson and The Gift Wrap Company brands. American Greetings Corporation will acquire 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 that the value-maximizing transaction agreements will allow certain areas of the business to continue operating under new ownership. These agreements demonstrate the importance of the various business segments and create an opportunity for these brands to thrive going forward. Brett Anderson, Chief Strategy Officer, emphasized 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.
The Company will work with the buyers to transition ownership of the businesses and/or related assets in connection with the closing of the Transactions, all of which are expected to occur by year end, subject to customary closing conditions. DGA remains focused on serving its customers during these transitions. Latham & Watkins LLP is serving as legal counsel, Huron Consulting Group LLC is serving as financial advisor, Huron Transaction Advisory LLC is serving as investment banker, and C Street Advisory Group is serving as strategic communications advisor to DGA.
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