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Lang Files Chapter 11

By Staff -- Gifts and Dec, 7/20/2009 11:38:00 AM

Delafield, WI – Stationery and gift company Lang Holdings Inc. filed Thursday for Chapter 11 bankruptcy, Yankees calendar by Lang according to the Milwaukee Journal Sentinel. CEO Laurie Gilner attributed the decision to tightened credit markets, declining sales and one-time restructuring costs. Since April 9, four lawsuits have been filed against Lang Holdings or its subsidiaries, each accusing Lang of not meeting financial obligations.

According to Reuters, the company is seeking about $8.5 million of debtor financing from Sun Lang Finance LLC and looking to sell its assets, which are worth between $50 and $100 million. Lang’s debts come to $10-$50 million. Lang is aiming for a relatively speedy sale under court supervision. The company is looking for a 'stalking horse' bidder to make the lead bid and creates a floor for the bidding, in exchange for certain protections that often include break-up fees. It received two letters of intent, but neither was acceptable to its pre-petition lenders.

The firm said it has a commitment for up to $16 million in financing while it goes through Chapter 11. Operations, including payments to Lang’s 148 full time and 77 part time employees and shipments to customers, are expected to continue as normal.

Founder Robert Lang sold his interest in Lang Holdings in 2003. The majority of Lang Holdings stock is owned by private equity firm Catterton Partners.

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I have been buying Lang for our store for about 15 years. IT is the only company which, my customers ask when the product is coming in. They use to love your candle line, which I think was a big mistake of discontinuing. I sell Calendars, Christmas Cards, Bob's Boxes,mugs, and the pre-packs for different season's. I hope we can somehow continue to purchase the products. It is really a terrific line!

Debbie Miktus - 2009-08-08 15:46:00 EDT

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