Filing Alert: IMG Holdings (Parent of Dana Classic Fragrances) Chapter 11

IMG Holdings, Inc., parent of New York-based Dana Classic Fragrances, Inc., a niche personal care company that markets and sells a portfolio of classic and long-established fragrance brands, filed for Chapter 11 protection on Aug. 11 in the U.S. Bankruptcy Court for the District of Delaware.⁽¹⁾

The filing is intended to facilitate a sale of the company’s core trademarks to stalking horse bidder Fragrance Xtreme, Inc. for $3 million under section 363 of the Bankruptcy Code. The sale is the centerpiece of a comprehensive, pre-filing settlement agreement reached with key stakeholders, including Disney Enterprises, Inc. and secured creditor agent Patriarch Partners Agency Services, LLC, to resolve long-running litigation and trademark disputes. Fragrance Xtreme is also providing up to $500,000 in DIP financing to fund the cases.

The company reports $1 million to $10 million in assets and $50 million to $100 million in liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 25-11500.

⁽¹⁾ For a complete list of debtor entities, see the Chapter 11 Debtors table.

Chapter 11 Debtors

Top Unsecured Claims

Key Parties

Counsel:

• William E. Chipman, Jr.
• Chipman Brown Cicero & Cole, LLP
• Email: chipman@chipmanbrown.com

Signatories:

• Larry Thompson – Chief Executive Officer

Claims Agent:

• Stretto, Inc.

Equity Security Holders:

• New Phoenix II, LLC – 85.2% Equity Interest
• New Phoenix III, LLC – 14.8% Equity Interest

Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.

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