Craft retailer Joann has filed for Chapter 11 bankruptcy protection for the second time in a year.
Gordon Brothers Retail Partners is set as the stalking horse bidder in the Joann bankruptcy proceedings.
Joann has commenced proceedings in the U.S. Bankruptcy Court for the District of Delaware to facilitate a sale process to maximize the value of its business, with stores remaining open in ordinary course to serve customers, the company reported. Joann filed for bankruptcy in March, 2024, and emerged as a private company a few weeks later.
Joann noted it intends to seek approval for a consensual use of cash collateral to ensure it has the liquidity necessary to support operations.
“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,” Michael Prendergast, Joann’s interim CEO. “However, the last 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. After carefully reviewing all available strategic paths, we have determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business. We hope that this process enables us to find a path that would allow Joann to continue operating as a going concern.”
