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 company is taking this step to facilitate a sale process that will maximize the value of its business. They have requested court approval to begin selling most of their assets and have chosen Gordon Brothers Retail Partners, LLC as their “stalking horse” bidder.
According to Michael Prendergast, interim CEO of JOANN: “Since becoming a private company in April, our board and management team have been working hard on both top- and bottom-line initiatives to control costs and increase value. However, we’ve faced significant challenges over the past few years due to changes in the retail industry along with our current financial situation and limited inventory levels.”
If other qualified bids are received during this court-supervised sale process, an auction or auctions will be held with Gordon Brothers’ bid setting the minimum price.
Joann has enlisted Kirkland & Ellis as their legal counsel while Centerview Partners LLC serves as financial advisor and Alvarez & Marsal North America LLC acts as restructuring advisor. With over 800 stores across 49 states currently operating under Joann’s name; they hope that this sale will help them overcome these obstacles they’ve faced recently.
