Lenox Group files for bankruptcy
EDEN PRAIRIE, Minn. — Lenox Group Inc., which makes dinnerware, gifts and collectibles, said Monday it filed for Chapter 11 bankruptcy protection, the latest company to succumb to the weak retail environment.
It is seeking an $85 million debtor-in-possession financing facility from its revolving lender group to pay employees, make material purchases and pay operating expenses.
The company will continue to conduct "business as usual," Chief Executive Marc Pfefferle said in a statement.
Lenox was called Department 56 until 2005 when it changed its name after buying Lenox Inc., a fine-china maker, to offset declining demand for its collectibles. Debt from the acquisition and the weakening financial markets lead to the filing, Lenox Group said.
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Lenox trades on an over-the-counter bulletin board. It expects trading in its shares will be temporarily halted until the exchange receives more information about the company’s financial condition.
Other retailers that have filed for bankruptcy this year include electronics retailer Circuit City Stores Inc., specialty retailer Linens ’N Things and department-store chain Mervyns LLC.
