Joann’s Bankruptcy: A Timeline of Events
Joann’s History
- Founded in 1943, Joann is a renowned retailer specializing in fabrics, crafts, and home decor.
- In 2011, the company was acquired by the equity firm Leonard Green & Partners for approximately $1.6 billion.
- In 2021, Joann went public with an initial share price of $12.
The Bankruptcy Saga
March 2024:
- Joann files for Chapter 11 bankruptcy protection for the first time, citing financial challenges.
- Secures $132 million in new financing and reduces funded debt by $500 million.
- No disruptions are anticipated for customers, vendors, or creditors.
Post-Bankruptcy Developments
- April 2024: Joann becomes a private company again after its initial bankruptcy filing.
- January 2025: Rumors of store closures begin to surface.
Second Bankruptcy Filing
January 2023:
- Joann files for bankruptcy a second time.
- Interim CEO Michael Prendergast cites significant challenges in the retail environment and constrained inventory levels as reasons for the filing.
Store Closures and Right-sizing
February 2023:
- Joann announces the closure of approximately 500 of its 850 U.S. locations.
- The company aims to "right-size its store footprint" and optimize operations.
Impact on Customers and Employees
- Stores and the website remain open for business.
- The closures will affect numerous team members, customers, and communities.
Key Players
- Michael Prendergast: Interim CEO
- Scott Sekella: Former CFO
- Amanda Hayes: Director of Corporate Communications
Industry Landscape and Reporting
- The retail environment has faced challenges in recent years.
- Industry reports and local news outlets have documented the store closures.
Conclusion
Joann’s second bankruptcy filing and subsequent store closures mark a significant event for the company and its stakeholders. Despite the financial difficulties, the company aims to continue serving customers and optimize its operations for the future.
