Design Group Americas Files for Chapter 11 Protection Amid Financial Challenges

IG Design Group Americas, Inc. and its domestic subsidiaries have announced a voluntary chapter 11 bankruptcy filing in the United States Bankruptcy Court for the Southern District of Texas. This strategic move is aimed at facilitating a court-supervised marketing and sale process under section 363 of the Bankruptcy Code, with the intention of maximizing the value of the company's assets. The company plans to engage with potential buyers for certain business segments while winding down its domestically manufactured woven ribbon products business.

The decision comes after years of navigating a challenging operating environment, exacerbated by the loss of a major customer and the imposition of new trade tariffs in 2025. These factors have significantly impacted the company's revenue and operational costs, leading to liquidity constraints and substantial working capital requirements. Sue Buchta, Chief Executive Officer of DGA, expressed the company's commitment to minimizing the impact on employees, customers, and partners during this process.

DGA has secured approximately $53 million in committed debtor-in-possession financing from an affiliate of Hilco Capital Group to support its strategy throughout the chapter 11 cases, pending court approval. The company has also filed customary 'first day' motions to ensure the continued payment of employee wages and benefits, among other relief measures. Non-U.S. affiliates of DGA are not included in the chapter 11 filings and will continue their operations as usual.

For more information on the court-supervised process, stakeholders can visit https://cases.ra.kroll.com/DGA. This development underscores the financial pressures facing companies in the consumer products sector and highlights the strategic steps being taken to navigate these challenges.