Craft retailer Joann has filed for Chapter 11 bankruptcy, aiming to facilitate a sale process to maximize its value. The company cites significant challenges in the retail environment and its current financial position as reasons for the filing. While the process is underway, Joann's stores and website remain open, and team members continue to receive compensation.
Joann , a well-known craft chain based in Ohio, has filed for voluntary Chapter 11 bankruptcy, according to an official announcement. The filing aims to facilitate a sale process that will maximize the value of the business. In a statement, Michael Prendergast, Joann 's interim chief executive officer, explained that the company has faced significant and lasting challenges in the retail environment over the past few years.
These challenges, combined with Joann's current financial position and limited inventory levels, made this step necessary.Prendergast stated that after carefully evaluating all available strategic options, the company decided that initiating a court-supervised sale process was the most prudent course of action to maximize the value of the business. He expressed hope that this process would lead to a path that allows Joann to continue operating as a going concern. The announcement emphasized that Joann's more than 800 stores and website remain open and continue to serve customers. Team members are also expected to continue receiving their pay and benefits. Prendergast extended his gratitude to the thousands of Joann team members across the nation for their dedication, particularly during the recent challenging times. He reaffirmed the company's commitment to supporting its employees and customers, including the sewists, quilters, crocheters, crafters, and other creative enthusiasts they have served for over 80 years, throughout the sales process. According to the filing, Joann is seeking to initiate a process for the sale of substantially all of its assets. Gordon Brothers Retail Partners has been designated as the 'stalking horse' bidder, meaning that while the sale will be open to other potential bids, Gordon Brothers will set the initial floor price for the auction. The company disclosed that if the sale to Gordon Brothers is ultimately finalized, Gordon Brothers intends to pursue the liquidation of the company and conduct going-out-of-business sales at all store locations
BANKRUPTCY RETAIL SALE JOANN CRAFT LIQUIDATION GORDON BROTHERS
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