JoAnn Fabrics, a crafts business, has once again declared Chapter 11 bankruptcy.
JoAnn declared bankruptcy in March of last year.In April, it became a private corporation after emerging from bankruptcy.
In order to expedite the sale process, JoAnn declared on Wednesday that it has initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware. Gordon Brothers Retail Partners, who will act as the highest bidder, is expected to purchase the company.But according to JoAnn, it would take other bids. According to JoAnn, the business would be liquidated if Gordon Brothers’ offer to purchase it is successful.
Gordon Brothers has stated that it plans to pursue a liquidation of the business and hold going-out-of-business sales at all shop locations if the sale to Gordon Brothers is ultimately finalized, according to JoAnn’s website.
JoAnn operates over 800 stores across 49 states, including ones in Lemoyne and Lower Paxton Township.A few years ago, a Carlisle business shuttered. The business has over 80 years of experience.
Michael Prendergast, JoAnn’s interim CEO, stated in a news release that the Board and management team have been carrying out top- and bottom-line efforts to control expenses and generate value since the company went private in April. However, the retail industry has faced substantial and long-lasting problems in recent years, which, along with our current financial situation and limited inventory levels, compelled us to take this action. We have thoroughly examined every strategic option and concluded that the greatest way to increase the company’s worth is to start a court-supervised sale process. Through this process, we want to identify a course of action that would enable JOANN to carry on as a going concern.
Stories by
Daniel Urie