IG Design Group Americas Files for Chapter 11 Bankruptcy to Maximize Asset Value

IG Design Group Americas, Inc. and its domestic subsidiaries have taken a significant step by filing for chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of Texas. This strategic move is designed to oversee a marketing and sale process under section 363 of the Bankruptcy Code, with the primary goal of maximizing the value of its assets. The company is looking to engage potential buyers for specific business segments, alongside the planned wind-down of its domestically manufactured woven ribbon products business.

The filing comes as a response to a series of financial challenges, including the loss of a major customer to liquidation and the anticipated impact of new trade tariffs set for 2025. These developments have notably strained DGA's revenue streams, operational expenses, and customer order volumes. Sue Buchta, Chief Executive Officer of DGA, has highlighted the company's dedication to reducing the effects of these proceedings on its employees, customers, and partners.

To support its strategy during the chapter 11 cases, DGA has arranged for approximately $53 million in debtor-in-possession financing from an affiliate of Hilco Capital Group, subject to court approval. The company has also submitted standard 'first day' motions to maintain employee wages and benefits, among other necessary relief measures. It's important to note that DGA's non-U.S. affiliates are not part of these filings and will continue their operations without interruption.

For those interested in the specifics of the court-supervised process, further information can be found at https://cases.ra.kroll.com/DGA. DGA is receiving guidance from a team of advisors, including Latham & Watkins LLP as legal counsel, Huron Consulting Group LLC as financial advisor and investment banker, and C Street Advisory Group for strategic communications.