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 Disney News, Disney World News |
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Last Updated: Apr 21, 2009 - 9:08:32 AM
By wdwinfo.com
Nov 26, 2008
Downtown Disney's Department 56 retail shop in Anaheim is part of the Lenox Group's Chapter 11 bankruptcy protection filing.
The press release included the following:
Our business has been significantly impacted by economic conditions and excessive debt levels incurred at the time Department 56 purchased Lenox, Incorporated in 2005. After exhausting all other possibilities and considering the current state of credit markets and the economy, we determined that the best way to complete a restructuring of the balance sheet and protect our franchise value was to pursue a sale of the company under court approval in a Chapter 11 proceeding. This process will give the company flexibility to operate on a normalized basis, dispose of unproductive assets, reduce operating costs and strengthen its balance sheet.
Court documents revealed:
The company began operations in 1992 under the name Department 56, Inc. as a retail and wholesale provider of gifts, collectibles and holiday decorations. In 1992, Forstmann Little & Co. acquired a significant ownership interest in Department 56 and, in the following year, led it through an initial public offering.
During the 1990’s, Department 56 experienced tremendous growth. However, by the late 1990’s, Department 56 sales volume started to significantly decline due to a contraction in the overall collectibles market, an aging core consumer base and a reduction in the number of independent small gift and specialty stores.
To bolster its product offerings, on Sept. 1, 2005, Department 56 purchased the Lenox, Inc. brands and product lines from Brown-Forman Corporation. After the merger, the name of Department 56 was changed to Lenox Group.
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