
Joann, a chain of shops with materials and articles for handicrafts, has filed the second application for bankruptcy in 12 months. The company with based in Ohio is seeking a buyer, to avoid liquidation. In the United States there are about 850 stores Joann.
The company from Ohio first announced decline in March 2024 year, a month after it became a private company, to keep its stores in the US. Why is the company filing for bankruptcy once again?
Joann seeks a buyer, who will rescue the company from liquidation
Judicial documents obtained by agency Bloomberg indicate, that under the proposed agreement with creditors, to whom the company is owed over 450 million dollars, Joann would have organized an auction in 30 days – in the
other time risks losing access to the money held as security.
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Bloomberg has also reported, that Joann must obtain approval from the court for the sale process, a company has already received an offer from the liquidator – Gordon Brothers Retail Partners.
If a higher offer is made by 12 February, Joann will hold an auction. However if it doesn’t appear, the buyer will be Gordon Brothers.
In addition, the company has 615.7 million dollars of debt obligations and 133 million dollars of trade debt, which must be paid off.
CEO Joann comments on collapse
The past years have posed significant and long challenges in the retail environment, which, in combined with our current financial situation and limited stocks, they forced us to take this step – said this temporary CEO Michael Prendergast in a press statement, which has been submitted to CNN.
Joann has 850 stores in the United States. CNN stated, that the shops and the internet website will remain open, while the company will be managed.process sales.
The Joann Network was founded in 1943 year and filed for bankruptcy on the basis of chapter 11 in March 2024 year, reporting over 2.44 billion dollars of debt, with about 2.26 billion
dollars of assets. The company then said that it had obtained commitments for new financing
of about 132 million dollars and expects reduction of debt by about
505 million dollars.
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Americannetworkhasnotstatedthereasonsforthe increaseof itsdebt,buttheAssociatedPressdidreportinlastyear,thatconsumersininflationarespendinglessonnonbasicgoods.