LENOX GROUP INC.

LENOX GROUP INC.

Previous company name
DEPARTMENT 56, INC.
Name change date
11/14/2005
Company Overview
Lenox Group Inc. is the market leader in quality tabletop, giftware and collectibles. The company designs, imports, and distributes hand-crafted collectibles, holiday merchandise, and giftware. The company’s corporate headquarters is located in Eden Prairie, Minnesota, United States of America. The company’s origin dates back to 1976 when Edward R. Bazinet established a small retail business under the name Department 56 Inc. Since then, the company has evolved to become a leading designer, wholesaler, and retailer of collectibles and gift items in North America.
Lenox Group sells fine china, crystal, silver, flatware, collectibles, decorative products for the home and personal accessories. The company’s products are marketed primarily under the Department 56, Lenox, Gorham and Dansk brands – some of the best known and most respected in the industry. Department 56 is best known for its lighted Village buildings, Snowbabies and extensive holiday, special occasion, home accent and personal accessories. The Lenox brand is America’s leading tabletop and giftware brand. It shares a passion for design and style with those who love to entertain and celebrate with family and friends. The Gorham brand sets the standard for quality American silver. Gorham extends its expertise to fine china, crystal and tableware. Dansk is a pioneer in tabletop design and is known for its innovative, contemporary tabletop products that make everyday dining an easy-living reality.
Lenox Group is committed to developing creative and innovative products to meet customer needs and changing lifestyle trends.
Lenox Group is active in North America. The company’s products are sold through wholesale customers who operate gift, specialty and department stores in the United States and Canada, company-operated retail stores and outlets throughout the United States, direct mail catalog companies, international distributors and e-tailers.
Business Summary
Lenox Group Inc. is a designer, distributor, wholesaler and retailer of tableware, collectible and other giftware products marketed under the Lenox, Department 56, Dansk and Gorham brand names. The Company’s business is divided into three segments: Wholesale, Retail and Direct. Although the product produced and sold for each segment is similar, the type of customer for the product and the method used to distribute the product are different. Under the Wholesale Segment, the Company sells its products through a range of wholesale channels. The Retail segment operates retail stores that sell the Company’s products. Under the Direct Segment, Lenox Group, the Company markets and sells its products directly to consumers. In November 2008, the Company announced that it filed a voluntary petition for reorganization relief under Chapter 11 of the United States Bankruptcy Code in the Southern District of New York.
Description and history
Lenox Group Inc., incorporated in 1992, is a designer, distributor, wholesaler and retailer of tableware, collectible and other giftware products marketed under the Lenox, Department 56, Dansk and Gorham brand names. These products are sold through gift and specialty retailers, department stores, and general merchandise chains, as well as through the Company’s own retail stores and consumer-direct channels of distribution, including Internet, catalog and mail order. The Company’s business is divided into three segments: Wholesale, Retail and Direct. Although the product produced and sold for each segment is similar, the type of customer for the product and the method used to distribute the product are different. Under the Wholesale Segment, the Company sells its products through a range of wholesale channels. The Retail segment operates retail stores that sell the Company’s products. Under the Direct Segment, Lenox Group, the Company markets and sells its products directly to consumers. In November 2008, the Company announced that it filed a voluntary petition for reorganization relief under Chapter 11 of the United States Bankruptcy Code in the Southern District of New York.

The tabletop business consists of a portfolio of consumer brands. The Company sells dinnerware, crystal stemware, stainless steel flatware, and giftware under the Lenox and Gorham brands. Dansk is the Company’s contemporary tabletop and giftware brand. The Company also sells collectibles under the Lenox brand. The Department 56 brand is associated with the Village Series of collectible, handcrafted, lighted ceramic and porcelain houses, buildings and related accessories that depict nostalgic scenes. The Company introduces new pieces, limited edition pieces, figurines and other accessories each year. The Company offers a range of other decorative giftware and home accessory items under the Department 56 brand, including its Snowbabies line of figurines and holiday and seasonal decorative items, and the Willitts brand, including Thomas Blackshear’s Ebony Visions and Possible Dreams.

The Wholesale Segment

The wholesale channels, through which the Company sells its products, include department stores, large specialty retailers, mass merchants, national chains and clubs, small independent specialty accounts and other wholesale accounts. Approximately 26% of the Wholesale segment’s sales during the fiscal year ended December 29, 2007 (fiscal 2007) (17% of consolidated sales) were to Macy’s, Inc.

The Retail Segment

As of February 1, 2008, the Company’s Retail segment operated 32 retail stores, including eight stores operated under the Department 56 trade name and 24 stores operated under the Lenox trade name. In fiscal 2007, the Company converted its three All the Hoopla concept stores to Department 56 stores.

The Direct Segment

Lenox Group markets and sells its products directly to consumers through various methods of direct marketing, including traditional direct-to-consumer methods (media advertising, direct mail and telemarketing), catalogs and the Company’s various Internet sites, including www.department56.com, www.lenox.com and www.dansk.com. On July 19, 2007, the Company entered into an asset purchase agreement with Lifetime Brands, Inc. (Lifetime) for the sale of certain assets of the Company’s sterling silver flatware and sterling silver giftware business conducted primarily under the Gorham and Kirk Stieff brand names. In addition, the Company granted a long-term exclusive license to Lifetime to utilize the Gorham, Kirk Stieff, Whiting and Durgin brands on and in connection with sterling silver products. The Company has retained all rights to utilize these brands on non-sterling silver products. In fiscal 2007 the Company discontinued manufacturing sterling silver flatware in its facility in Pomona, New Jersey.

When Edward R. Bazinet established a small retail business under the name Department 56 Inc

Business Line
Designs, imports, and distributes hand-crafted collectibles, holiday merchandise, and giftware
Subsidiary
D 56, INC
Advisor
DELOITTE & TOUCHE LLP
IPO date
6/1993
US SIC Code
3269
Company Address
One Village Place
6436, City West Parkway
City province or state postal code
55344, EDEN PRAIRIE, MN
Phone: +1 952 944 5600
Fax: +1 952 943 4500
Country address: UNITED STATES OF AMERICA
Website url: www.lenoxgroupinc.com