Design Group Americas, Inc. and its domestic subsidiaries announced that the U.S. Bankruptcy Court for the Southern District of Texas has approved the sales of certain assets across the Company’s Stationery, Gift, Sewing, and Play segments. The approval marks a significant step in the company’s restructuring process, with transactions expected to close by year end.
The court approved several key transactions. WIPHA Holdings, LLC will acquire assets in the Gift and Stationery segments, including Berwick poly ribbon and bows, Paper Magic Group, and Blumenthal, ensuring ongoing operations at the Berwick facility. The existing management of the Patterns business, in partnership with Rubelmann Capital, will purchase assets related to the Patterns business within the Sewing segment. Advantus Corp. will acquire assets in the Play and Sewing segments, including Anker Play Products, Perler, Eureka, Stickerfitti, Dudley’s, Boye, Dimensions, and Paintworks. Carousel Worldwide will take over the Lang dated products and calendar business in the Stationery segment. CBC Group, Inc. will acquire the C.R. Gibson and The Gift Wrap Company brands, also in the Stationery segment. Finally, American Greetings Corporation will purchase machinery, equipment, and other assets used to manufacture and distribute gift wrap at the Byhalia, MS facility.
“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,” said Sue Buchta, Chief Executive Officer. “These agreements demonstrate the importance of our various business segments and create an opportunity for these brands to thrive going forward. I am deeply grateful for the support of our employees and partners throughout this process.”
Brett Anderson, Chief Strategy Officer, added, “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. The Court’s approval of these transactions affirms months of careful planning and constructive engagement with interested parties and sets the stage for a smooth transition.”
The company will work with buyers to transition ownership, and all transactions are subject to customary closing conditions. DGA remains focused on serving its customers during these transitions. The company was advised by Latham & Watkins LLP as legal counsel, Huron Consulting Group LLC as financial advisor, Huron Transaction Advisory LLC as investment banker, and C Street Advisory Group as strategic communications advisor.
