Lion Ribbon: $1 Acquisition Precedes 76-Day Chapter 11 Sale

Lion Ribbon Texas Corp. and its affiliates—collectively operating as IG Design Group Americas, Inc. ("DGA")—filed for chapter 11 protection on July 3, 2025, just thirteen days after Hilco Capital acquired the consumer crafts and stationery business for a nominal $1 purchase price. The filing marked the end of a corporate lineage that included Berwick Offray—the world's largest manufacturer of decorative ribbons and bows—alongside Paper Magic Group, C.R. Gibson, and multiple craft and play brands accumulated through IG Design Group plc's January 2020 acquisition of CSS Industries. With approximately $53 million in DIP financing from Hilco affiliate HCS 107, LLC, the debtors conducted a 76-day dual-track sale process that culminated in six sale orders on September 17, 2025, distributing brands across multiple bidders while liquidating remaining inventory. The First Day Declaration filed by CFO Brett M. Anderson details the corporate history and circumstances leading to the filing.

The case reflects pressures facing import-dependent consumer products companies in 2025: the loss of major customer JOANN to liquidation, rising U.S. tariffs impacting supply chains with manufacturing concentrated in China, Hong Kong, and India, and cost inflation across freight, raw materials, and wages. DGA's fiscal year 2024 revenue of $500.3 million represented a decline from its FY2021 peak of $614 million achieved shortly after the CSS Industries acquisition—a 73% revenue surge. Judge Christopher M. Lopez entered the Confirmation Order on December 17, 2025, completing a 167-day chapter 11 case that transferred several brands to new owners and wound down remaining operations.

From Berwick Offray to IG Design Group: A Century of Ribbon and Craft

The Lion Ribbon bankruptcy reflects a corporate history in the decorative ribbon and craft products industry. The corporate genealogy traces back to 1922 when Offray opened a plant in Hagerstown, Maryland, establishing an early American ribbon manufacturing operation. Berwick Industries followed in 1945, and by 1989, Offray had acquired Lion Ribbon Co. of Chester, New Jersey for $38 million—during an era when yellow ribbon demand soared ten-fold during the 1990-1991 Persian Gulf War as the patriotic symbol became ubiquitous across America.

CSS Industries entered the picture in 1993 with its acquisition of Berwick, creating a vertically integrated ribbon and seasonal products platform. By 2002, the Berwick-Offray combination had consolidated into the world's largest manufacturer and distributor of decorative ribbons and bows. The company served major retailers across North America with poly ribbons, woven ribbons, gift bows, and seasonal decorative products.

The IG Design Group expansion. In January 2020, UK-based IG Design Group plc acquired CSS Industries through its U.S. subsidiary, IG Design Group Americas, Inc. The transaction combined CSS's ribbon and stationery brands with IG Design's global gift wrap and party goods portfolio. Revenue increased from $355.9 million in FY2020 (pre-acquisition CSS baseline) to $614 million in FY2021—a 73% increase.

By fiscal year 2022, operating losses emerged as the company cited freight and raw material cost inflation and wage increases across its manufacturing and distribution network. The combined enterprise had manufacturing operations spanning the United States, UK, Australia, and Asia.

Product Portfolio and Brand Architecture.

The DGA portfolio at filing encompassed six distinct business segments, each with recognized brands serving different channels within the broader celebrations, stationery, and craft markets.

This brand portfolio spanned multiple categories across the celebrations, stationery, and craft markets.

The $1 Acquisition and 13-Day Pre-Bankruptcy Window

The chapter 11 filing followed a prepetition transaction structure. On May 30, 2025, IG Design Group plc announced an agreement to sell DGA to Hilco Capital Limited for a nominal upfront payment of $1, with the parent company retaining a contingent right to 75% of proceeds from any post-disposal asset sales or realizations. The transaction closed on June 20, 2025—thirteen days before the chapter 11 filing—establishing Hilco's control position before the bankruptcy sale process.

Greenberg Traurig, LLP advised Hilco Capital on the acquisition. For the fiscal year ended March 31, 2024, DGA had reported audited revenue of $500.3 million and operating profit of $4.9 million before tax.

Hilco Capital served as both the prepetition acquirer (taking ownership through the $1 purchase) and postpetition lender (through its affiliate HCS 107, LLC providing DIP financing). The transaction also provided IG Design Group with a 75% revenue share of post-disposal asset sales.

Causes of Financial Distress

Loss of JOANN as a Major Customer.

The liquidation of JOANN—the craft retail chain's second bankruptcy—created an impact across the craft and stationery supply chain. As one of the largest specialty craft retailers in the United States, JOANN represented a major distribution channel for craft and sewing suppliers, and its permanent exit left what industry observers described as a "huge gap in the retail fabric market" that affected vendors across the crafting ecosystem.

DGA's court filings specifically cite the "loss of a major customer to liquidation" as a contributing factor to the liquidity constraints that precipitated the filing. Significant portions of revenue concentrated in the holiday season required building inventory months in advance, and the loss of a major outlet for that inventory created revenue gaps and working capital pressure.

Major retailers sought emergency access to holiday inventory during the DGA bankruptcy, reflecting the importance of seasonal timing in the celebrations products business.

Tariff-Induced Liquidity Pressure.

DGA's global supply chain—with manufacturing operations concentrated in China, Hong Kong, and India—faced direct exposure to escalating U.S. tariffs. The company relied on Asian manufacturing for large portions of its product lines, and rising import duties increased costs.

Court filings reference "tariff-induced liquidity pressure" as part of the pre-bankruptcy decision. The craft industry broadly experienced supply chain disruption from tariff wars in 2025, with suppliers, wholesalers, and retailers grappling with cost uncertainty.

Cost Structure Pressures and Seasonal Working Capital.

The cost structure challenges extended beyond tariffs to include inflationary pressures. Post-pandemic freight costs remained elevated compared to historical norms. Raw material costs for poly ribbon, paper products, and plastic components increased. Wage inflation across manufacturing and distribution operations added labor cost pressure across the company's 1,400+ employee base.

The seasonal nature of large portions of DGA's business created additional working capital pressure. Holiday-focused products—including gift ribbon, bows, greeting cards, and seasonal decorations—required building inventory through the summer and early fall for delivery to retailers ahead of the holiday selling season. This seasonal working capital cycle created a structural funding need.

The decision to file for chapter 11 protection followed these customer losses, tariff exposure, cost inflation, and seasonal funding requirements.

DIP Financing and Hilco's Dual Role

HCS 107, LLC—a Hilco affiliate—provided approximately $53 million in committed DIP financing, allowing DGA to fund operations through the sale process and wind-down activities. The court approved the DIP Interim Order on July 7, 2025—just four days after filing—with a DIP Final Order entered on August 6, 2025.

Hilco Capital, having acquired the equity for $1, controlled the corporate governance of the debtors entering bankruptcy. HCS 107, LLC, as the DIP lender, provided the postpetition financing detailed in the DIP Motion that funded operations and the sale process.

The $53 million facility funded operations through the sale process and wind-down activities.

76-Day Section 363 Sale Process

Bidding Procedures and Dual-Track Strategy.

The debtors pursued a dual-track strategy: selling four distinct business segments as going concerns, while simultaneously liquidating remaining inventory and assets that did not attract going-concern interest. The Bidding Procedures Motion filed July 17, 2025 outlined the proposed sale framework.

The Bidding Procedures Order, entered July 31, 2025, established the framework for marketing assets, qualifying bidders, and conducting an auction if competitive interest emerged. Carousel Worldwide, Inc. served as stalking horse bidder for the Lang dated products and calendar business, with a Stalking Horse Order entered September 8, 2025 that established baseline terms and provided bid protections.

Successful Bidders and Asset Distribution.

The auction on September 11, 2025 resulted in asset distribution to five distinct buyers, with six Sale Orders entered on September 17, 2025.

WIPHA Holdings acquired the ribbon and gift business segments, including the Berwick poly ribbon and bows operation. The acquisition ensured ongoing operations at the Berwick facility.

Advantus Corp. purchased the Play and Sewing segments, acquiring a portfolio of brands including Perler (bead crafts), Anker Play (children's activities), Eureka (educational products), and the Boye/Dimensions sewing brands.

The management buyout of the Patterns business, backed by Rubelmann Capital, transferred the segment to existing leadership.

The six sale orders entered on September 17, 2025 formalized the transfer of assets to the successful bidders, closing the 76-day sale process that had begun with the July 3 petition.

Plan of Liquidation and Confirmation

Following completion of the asset sales, the debtors filed their Joint Plan of Liquidation and Disclosure Statement on November 6, 2025. The plan formalized the post-sale wind-down, establishing a Liquidating Trust to hold and distribute remaining assets to creditors in accordance with the Bankruptcy Code's priority scheme.

The plan established the Liquidating Trust as the vehicle for collecting remaining receivables, reconciling and paying administrative and priority claims, and making distributions to creditors to the extent assets remained after satisfying senior claims.

Third-party releases were proposed under Article X of the plan, as detailed in the Amended Confirmation Order. The 167-day case from petition to confirmation ran from July 3 to December 17.

Workforce Impact and Facility Closures

The bankruptcy resulted in permanent job losses, most visibly at the Lion Ribbon manufacturing facility in Batesburg-Leesville, South Carolina. DGA filed a WARN Act notice on June 27, 2025—six days before the bankruptcy—announcing the permanent closure of the facility at 832 Summerland Avenue in Lexington County.

The Lexington County Chronicle reported that most layoffs affected machine operators and technicians. The closure ended Lion Ribbon's manufacturing presence in Batesburg-Leesville, a legacy dating to the 1989 acquisition when Offray purchased the Chester, New Jersey operation.

Lion Ribbon had been a large manufacturer and importer of woven ribbons in North America. The going-concern sales maintained operations at certain facilities, including the Berwick operation acquired by WIPHA Holdings, but the overall workforce impact of the chapter 11 process included job losses across locations that did not attract going-concern buyer interest.

Professional Retentions

The case involved multiple professional retentions for the sale process and wind-down activities.

Debtor Professionals.

Latham & Watkins served as lead bankruptcy counsel. Huron Consulting provided financial advisory services. AZB & Partners served as India counsel.

Committee Professionals.

The Official Committee of Unsecured Creditors retained co-counsel and co-financial advisors, including Orrick, Lowenstein Sandler, Dundon, and Foresight.

Key Timeline

Industry Context and Implications

The Lion Ribbon/DGA bankruptcy occurred within distress affecting the craft and stationery industry. The craft industry's 2025 reflections characterized the year as difficult, with tariff wars combining with retail disruptions for suppliers, wholesalers, and retailers alike.

JOANN's impact. The JOANN liquidation left a gap in the craft retail channel that affected suppliers across the industry. JOANN had served as a primary distribution channel for fabric, sewing, and craft products, and its exit left inventory produced for JOANN's holiday programs. For DGA, which counted JOANN among its major customers, the liquidation occurred during a period of stressed liquidity.

Tariff environment. Import-dependent suppliers faced uncertainty as tariff policies shifted and supply chain costs remained elevated. The craft industry's reliance on Asian manufacturing—particularly for lower-price-point consumer products—created exposure to trade policy risk. DGA's characterization of "tariff-induced liquidity pressure" in court filings reflected an experience shared across the industry.

Seasonal business model stress. The seasonal concentration of craft and celebrations revenue creates working capital challenges. The need to build inventory months in advance of the holiday selling season, finance that inventory through production and distribution, and then collect receivables after seasonal delivery creates a funding cycle that depends on access to working capital financing.

Frequently Asked Questions

What is Lion Ribbon Texas Corp. and how is it related to IG Design Group Americas? Lion Ribbon Texas Corp. is the lead debtor in a jointly administered bankruptcy case involving IG Design Group Americas, Inc. (DGA) and its domestic subsidiaries. DGA operated as a leading global manufacturer and distributor of celebrations, stationery, creative play, and gifting products with brands including Berwick, Paper Magic Group, C.R. Gibson, Lang, and Anker Play. The company employed over 1,400 people with operations in the U.S., UK, Australia, and Asia, generating approximately $500 million in annual revenue.

What caused the chapter 11 filing? Multiple factors contributed to the bankruptcy: the loss of JOANN as a major customer following its liquidation, rising U.S. tariffs impacting the import-dependent supply chain with manufacturing concentrated in China, Hong Kong, and India, freight and raw material cost inflation, wage increases across a 1,400+ employee base, and seasonal working capital requirements for holiday inventory buildup. DGA's FY2024 revenue of $500.3 million represented a decline from its FY2021 peak of $614 million.

What is the significance of the $1 Hilco Capital acquisition? Hilco Capital Limited acquired DGA from IG Design Group plc for a nominal $1 on June 20, 2025—just 13 days before the chapter 11 filing. The transaction included a contingent payment structure where IG Design Group receives 75% of proceeds from post-disposal asset sales. This structure facilitated an orderly bankruptcy process, with Hilco affiliate HCS 107, LLC providing $53 million in DIP financing and Hilco controlling the economic dynamics of the sale process.

What brands were sold and to whom? Five buyers acquired assets across different segments: WIPHA Holdings purchased Gift and Stationery (Berwick, Paper Magic Group, Blumenthal); Advantus Corp. acquired Play and Sewing (Anker Play, Perler, Eureka, Stickerfitti, Dudley's, Boye, Dimensions, Paintworks); Carousel Worldwide purchased Lang calendar products; CBC Group acquired C.R. Gibson stationery; and existing management with Rubelmann Capital acquired the Patterns business. Six sale orders were entered on September 17, 2025.

How quickly did the case proceed? The case moved on a compressed timeline: filed July 3, 2025; auction September 11, 2025; six sale orders September 17, 2025 (76 days from petition to sale orders); plan confirmation December 17, 2025 (167 days total from petition to confirmation).

What is the corporate history of the ribbon manufacturing business? The ribbon legacy traces to 1922 when Offray opened in Hagerstown, Maryland, and 1945 when Berwick Industries was founded. In 1989, Offray acquired Lion Ribbon Co. for $38 million—during the Persian Gulf War era when yellow ribbon demand soared. CSS Industries acquired Berwick in 1993, and by 2002, Berwick Offray had become the world's largest ribbon and bow manufacturer. IG Design Group plc acquired CSS Industries in January 2020, creating the DGA platform that later entered bankruptcy.

What happened to the South Carolina manufacturing facility? The Lion Ribbon facility in Batesburg-Leesville, Lexington County, South Carolina, permanently closed with 112 employees (primarily machine operators and technicians) laid off effective August 26, 2025. The WARN Act notice was filed June 27, 2025, six days before the bankruptcy petition.

Who provided DIP financing? HCS 107, LLC—a Hilco affiliate—provided approximately $53 million in committed DIP financing. Hilco served as both prepetition acquirer ($1 purchase) and postpetition DIP lender.

How did JOANN's bankruptcy impact DGA? JOANN's second bankruptcy and ultimate liquidation created a major gap in the retail craft channel and represented the loss of a major customer for DGA. Court filings specifically cite this customer loss as contributing to liquidity constraints. The timing occurred during a period of tariff uncertainty and cost inflation.

What is the current status of the case? Judge Christopher M. Lopez confirmed the Joint Plan of Liquidation on December 17, 2025. The case is proceeding to administration under a Liquidating Trust, which will hold and distribute remaining assets to creditors following the completed asset sales. The six sale orders entered in September 2025 transferred the viable business segments to new owners who are continuing operations.

Who is the claims agent for Lion Ribbon?

Kroll Restructuring Administration LLC serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

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