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Lenox Group, Inc., a market leader in high-quality tabletop, giftware and collectibles products, announced the completion of the sale of its assets in a voluntary Chapter 11 financial reorganization to a group led by Clarion Capital Partners. The "new" Lenox, which includes the Lenox, Dansk®, Gorham® and Department 56® brands, will now operate outside of Chapter 11 bankruptcy. Carl Marks Advisory Group LLC (CMAG) worked closely with Lenox, its board and its financial and legal advisors, Berenson & Company and Weil, Gotshal & Manges, to complete the company's restructuring and sale. Carl Marks also provided interim management services.
After suffering consistently declining sales, profits and cash flow, Lenox Group engaged CMAG in a general management capacity in January 2007. Marc Pfefferle, a CMAG partner, was named interim chief executive officer.
"We immediately went to work to create cost reductions, revamped product development efforts and developed a long-term turnaround plan," Pfefferle said, noting the strategy eventually included voluntarily putting the company into Chapter 11.
However, shrinking demand for tabletop and collectibles products, as well as excessive debt levels, prompted the company to ultimately file a voluntary Chapter 11. Pfefferle said the Chapter 11 process was managed smoothly with the strong support of Lenox's customers and vendors. It also allowed Lenox to shed burdensome liabilities and further reduce operating costs.
"Lenox's successful revival can be credited to the diligent work and dedication of its entire management team and the lenders and advisors who supported the recovery efforts," said Pfefferle. "It's an exciting time for Lenox. The company's new CEO, Peter Cameron, is a seasoned executive with tremendous credibility in the tabletop industry. He will provide the leadership and guidance needed to develop the Lenox brands to their fullest potential."
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