After emerging from bankruptcy nine months ago, Joann Inc., a retailer based in Hudson, OH, has voluntarily filed for Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware. The purpose of this filing is to facilitate a sale process that will maximize the value of its business. In order to do so, Joann Inc. is seeking court approval to begin selling off most of its assets and has chosen Gordon Brothers Retail Partners LLC as their “stalking horse” bidder.
According to interim CEO Michael Prendergast, since becoming a private company in April, Joann’s board and management team have been working on initiatives aimed at improving both top- and bottom-line performance by managing costs and increasing value. However, due to ongoing challenges within the retail industry over recent years coupled with their current financial situation and limited inventory levels, they have had no choice but take this step.
If other qualified bids are received during this court-supervised sale process , an auction or multiple auctions will be held with Gordon Brothers’ bid serving as the minimum acceptable offer.
Joann has enlisted Kirkland & Ellis as legal counsel along with Centerview Partners LLC acting as financial advisor and Alvarez & Marsal North America LLC providing restructuring advice throughout this process . With more than 800 stores operating across 49 states , it remains uncertain what impact these developments will have on employees or customers moving forward.
