KPS Capital Partner wins Lenox auction
-- Home Accents Today,02/17/2009
New York — Private equity firm KPS Capital Partners LP won an auction to buy substantially all the assets of gift and tabletop vendor Lenox Group, which filed for bankruptcy in late 2008 . The offers includes the Lenox, Dansk and Gorham brands. It does not include Department 56, which is scheduled for a separate auction, to be held shortly.
Through a newly formed company, KPS committed enough capital to cover the entire purchase price, plus the cash Lenox will need after the closing, without outside financing. The auction and sale is subject to approval of the U.S. Bankruptcy Court. KPS manages the KPS Special Situations Funds, which invests in restructurings, turnarounds and other special situations. In addition to the Lenox deal, KPS recently entered into a letter of intent with bankrupt tabletop brand Waterford Wedgwood UK Plc and is working to fast track agreement terms.
"KPS made a substantial and firm offer and was the highest qualified bidder with the greatest certainty of closing quickly," said Marc Pfefferle, Lenox CEO. "Furthermore, KPS's commitment to provide the capital to build our brands so they can realize their full potential for sustainable growth and profitability is a great outcome for our employees, customers and vendors."
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| Submitted by: | George Gravitz 2/20/2009 11:48:17 AM PT |
Wow this is earth shattering news that is really going to help the
business! Lenox is not the company of old, it's channel of distribution is
gone. The line is being "dumped" in Marshalls, TJ's and Tuesday
Morning! The existing management will be put "on sale", and the
marketing geniuses of new will attempt to create new and exciting
categories like Lenox perfumes, toilet paper or scented candles. We have
to many brands, not enough doors and poor business acumen!
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