Orange County Register

Lenox Group, the maker and retailer of tableware, collectible and other giftware products under the Lenox, Department 56, Dansk and Gorham brand names, announced Sunday that it filed for Chapter 11 bankruptcy protection.

The company owns the Department 56 store at Downtown Disney in Anaheim.

Lenox Group brands are also sold at Macy’s, Bloomingdale’s, J.C. Penney, Bed Bath & Beyond and Neiman Marcus.

According to the company press release:

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.

Here’s the history of the company, according to a court document:

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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• Circuit City closing O.C. store
• Bankrupt shoe retailer closing last 2 O.C. stores
• $35 movie ticket may be coming to O.C.

For more from OC Retail, see list of links on right-hand side of this blog.

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