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Fabrics and Crafts Retailer Joann Files for Second Bankruptcy, Plans Sale of Assets
Nine months after emerging from bankruptcy, retailer Joann Inc. has commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware to facilitate a sale process to maximize the value of its business. The Hudson, OH-based company is seeking court approval to commence a process for the sale of substantially all its assets, with Gordon Brothers Retail Partners, LLC serving as the “stalking horse” bidder.
“Since becoming a private company in April, the board and management team have continued to execute on top- and bottom-line initiatives to manage costs and drive value,” said Michael Prendergast, interim CEO of Joann. “However, the past several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step.”
If other qualified bids are submitted during the court-supervised sale processes, the company plans to conduct an auction or auctions, with the stalking horse bid setting the floor.
Kirkland & Ellis is serving as legal counsel to Joann, with Centerview Partners LLC serving as financial advisor and Alvarez & Marsal North America, LLC serving as restructuring advisor. The company operates more than 800 stores across 49 states.
- ◦Sale/Acquisition
