Lion Ribbon Texas Corp. and its debtor affiliates have asked a bankruptcy court to approve procedures for selling their crafting, gifting, and stationery businesses as going concerns, marking a significant step in their Chapter 11 restructuring process. The company is pursuing a dual-track strategy of selling four business segments while liquidating other assets to maximize value for creditors.
In a motion filed on July 17, 2025, in the United States Bankruptcy Court for the Southern District of Texas, the company requested approval of bidding procedures that would culminate in an auction scheduled for September 11, 2025, if multiple qualified bids are received.
"The Debtors, in consultation with Huron Transaction Advisory LLC and their other advisors, have determined that the value of their estates can be maximized through the going-concern sale of several of their business segments," the company stated in its filing. The motion seeks approval for "a process by which such segments and/or the Non-Liquidating Assets associated therewith can be marketed and sold."
Lion Ribbon and its affiliates design, manufacture, and distribute high-quality consumer crafting, gifting and stationery products for celebrations, hobbies and creative play. The company operates globally with facilities across North America and supporting operations in India, Hong Kong, China, the United Kingdom, and Australia. According to court documents, the company filed for Chapter 11 protection on July 3, 2025, facing what it described as "tariff-induced liquidity pressure and other challenges."
The proposed sale involves assets from four business segments:
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Sewing: Includes accounts receivable, inventory, machinery/equipment for sewing patterns production, sewing supplies, and related intellectual property.
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Gift: Comprises assets related to wrapping paper and poly bow production, other items like gift bags and boxes, and associated intellectual property.
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Stationery: Includes accounts receivable and inventory related to calendars, dated products, journals, greeting cards, and similar products, along with related intellectual property.
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Play: Consists of accounts receivable and inventory related to toys, games, arts and crafts kits, and other child-friendly products, plus related intellectual property.
The company's fifth business segment, Ribbon, is being liquidated rather than sold as a going concern, according to the filing.
The motion outlines a comprehensive timeline for the sale process:
- July 18, 2025: Deadline for interested parties to submit non-binding indications of interest
- September 8, 2025: Deadline for submission of binding bids
- September 11, 2025: Auction date (if multiple qualified bids are received)
- September 17, 2025: Sale hearing before Judge Christopher Lopez
- October 1, 2025: Deadline for closing transactions
The bidding procedures also provide for the possible designation of "stalking horse bidders" who would set a floor price for the assets and potentially receive bid protections such as break-up fees and expense reimbursements.
Lion Ribbon is financing its Chapter 11 case with a $53 million debtor-in-possession facility from HCS 107, LLC, which was approved on an interim basis by the court on July 7, 2025. The DIP lender and prepetition lender would be entitled to credit bid their claims in the auction process.
According to Brett M. Anderson, the company's Chief Strategy Officer, "Following discussions with their advisors and certain parties in interest, the Debtors have decided to undertake going-concern sales" of the four business segments while liquidating other assets to maximize recoveries.
The company is represented by Latham & Watkins LLP in the bankruptcy case, with Ray C. Schrock, Caroline Reckler, Adam S. Ravin, Randall Carl Weber-Levine, and Meghana Vunnamadala serving as proposed counsel. Huron Transaction Advisory LLC is serving as the company's investment banker for the sale process.
The bankruptcy case is being jointly administered under case number 25-90164 (CML) in the Houston Division of the Southern District of Texas Bankruptcy Court.
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 88 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.