For the second time in less than a year, a national sewing, arts and crafts retailer is seeking bankruptcy protection.
Joann filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware to facilitate a sale process “to maximize the value of its business,” according to a release. Joann is seeking a sale of substantially all of its assets, with Gordon Brothers Retail Partners serving as the “stalking horse” bidder. Gordon Brothers recently completed a sale transaction with Big Lots.
In court documents, Joann blamed “unexpected” and “acute” inventory issues, which took a big bite out of sales and put its $615 million debt in an “untenable position.” The retailer recently moved into a large new space at the Columbia Center mall in Kennewick.
Joann’s stores and website will remain open for business as usual during the sale process. The retailer operates more than 800 stores across 49 states.
Joanne previously filed for bankruptcy in March 2024. Under the retailer’s bankruptcy restructuring, Joann’s creditors agreed to cancel some $505 million of the company’s nearly $1.1 billion in long-term debt. No stores were closed as part of the reorganization.
Upon exiting bankruptcy, Joann became a private company owned by some of its creditors.
Daily and Monthly News
Mailing Address: 8656 W. Gage Blvd., Ste. C303 Kennewick, WA 99336 USA
All content copyright © 2024 Mid-Columbia Media Inc. All rights reserved.
No reproduction, transmission or display is permitted without the written permissions of Mid-Columbia Media Inc.
Design, CMS, Hosting & Web Development :: ePublishing
