July 9, 2025 — IG Design Group Americas Inc., a leading supplier of crafts and hobby products, filed for Chapter 11 bankruptcy protection on July 3, 2025, in the U.S. Bankruptcy Court for the Southern District of Texas.
The filing comes as the company grapples with the fallout from the bankruptcy and liquidation of its largest customer, Joann, alongside broader economic pressures including U.S. tariffs on imported goods.
The Berwick, Pennsylvania-based company, along with 21 affiliates, is seeking to sell its crafting and hobby business units as a going concern while winding down certain operations.
IG Design Group Americas’ financial difficulties were significantly exacerbated by the closure of Joann, a major fabrics and crafts retailer that operated 815 stores across the United States.
Joann filed for Chapter 11 bankruptcy on January 15, 2025, and subsequently opted for liquidation in February, shuttering all its locations.
As Joann accounted for a substantial portion of IG Design Group’s revenue, this closure severely disrupted the company’s ability to maintain its historical operating results, according to court documents.
The company also faced significant challenges due to tariffs imposed by the Trump administration on imported goods.
IG Design Group, which relies heavily on international suppliers, noted that these tariffs severely raised the cost of doing business, further reducing customer orders and straining its financial position.
Posts on X from July 2, 2025, highlighted the impact of these tariffs, with one user noting that IG Design Group’s parent company, UK-based IG Design Group plc, cited U.S. trade tariffs as a key factor in its decision to lay off over 100 employees in Lexington County.
The retail sector as a whole has faced a wave of bankruptcies in 2025, with major chains like Party City, Forever 21, and Big Lots also filing for Chapter 11 protection.
These filings have had a ripple effect on suppliers like IG Design Group, which struggle to replace the income lost from these large customers.
Bankruptcy Details and Asset Sales
IG Design Group Americas listed assets ranging from $100 million to $500 million and liabilities including over $25 million in secured debt and more than $105 million in unsecured debt.
Its largest unsecured creditors include Hatfield & Associates, owed over $1.8 million; Hong Kong Rui Sheng Yuan Ltd., owed over $1.5 million; and Star Moon Toys (HR) Company Ltd., owed over $767,000, according to court filings.
The company is pursuing a sale of its crafting and hobby business units, which include sewing, gift, stationery, play, and ribbon assets, as a going concern.
In May 2025, IG Design Group sold certain assets to an affiliate of Hilco Capital Ltd., which planned to sell those assets as a going concern while liquidating others.
The company is also winding down its domestic woven ribbon business as part of its restructuring efforts.
The bankruptcy filing reflects broader challenges in the retail and crafts sector, where economic headwinds such as inflation, high interest rates, and shifting consumer spending patterns have taken a toll.
A July 7, 2025, article on biztoc.com noted that the retail sector has seen significant bankruptcy filings over the past year, including Rite Aid, Joann, Party City, and Forever 21, driven by post-COVID economic challenges and rising costs.
IG Design Group Americas’ filing was announced on X by multiple sources, including @Law360 and @WSJBankruptcy, which reported on July 7 and 8, 2025, that the company sought Chapter 11 protection to pursue asset sales while addressing its financial difficulties.
The company’s parent, IG Design Group plc, has not commented on whether the U.S. bankruptcy will impact its global operations.
As IG Design Group navigates its Chapter 11 process, the outcome of its asset sales and restructuring efforts will be critical to its future.
The case, filed under Case No. 25-90165, will continue to unfold in the Southern District of Texas, with stakeholders closely monitoring the company’s next steps.
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