Joann Inc., the Ohio-based crafts retailer, seeks a buyer to avoid liquidation after filing for Chapter 11 bankruptcy protection for the second time in less than a year.
Joann Inc., the Ohio-based crafts retailer, has once again filed for Chapter 11 bankruptcy protection, marking its second foray into bankruptcy in less than a year. In a bid to 'maximize the value of its business,' the company is also pursuing a sale to another entity. Interim CEO Michael Prendergast stated on Tuesday that Joann has been grappling with a difficult retail landscape, compounded by declining sales and limited inventory levels.
These factors ultimately prompted the company to seek bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware.Just last March, Joann filed for Chapter 11 for the first time in its 81-year history, transitioning into a private company. However, this time around, the company is actively seeking a buyer to ensure its continued operation. Prendergast emphasized that a court-supervised sale process is the most strategic path forward, aiming to unlock the full potential of the business. He expressed hope that this process would lead to a solution that allows Joann to remain a viable entity.The company has engaged Gordon Brothers Retail Partners LLC as its 'stalking horse' bidder, a party committed to making an initial bid for Joann's assets, often preceding a formal auction. Gordon Brothers intends to liquidate the company and conduct going-out-of-business sales at all store locations. However, Joann is actively seeking alternative bids from parties interested in maintaining the operation of its stores and online platforms. If compelling offers emerge, the company plans to hold an auction, with the stalking horse bid establishing the minimum value.While the sale process unfolds, Joann intends to keep all its stores operational, including its online platform. Employees will continue to receive their salaries and benefits.
BANKRUPTCY RETAIL JOANN SALE LIQUIDATION
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