Texas Border Business
Texas Border Business
Hudson, Ohio – January 15, 2025 – JOANN Inc., the nation’s leading retailer in sewing and fabric supplies, has voluntarily filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. The filing is intended to facilitate a court-supervised sale of its assets, with Gordon Brothers Retail Partners, LLC (“Gordon Brothers”) serving as the “stalking horse” bidder. Despite the bankruptcy process, JOANN stores and its online platform, JOANN.com, will continue to operate as usual.
Gordon Brothers Leads the Initial Bid
As part of its restructuring plan, JOANN is seeking court approval for the sale of substantially all of its assets under Section 363 of the U.S. Bankruptcy Code. Gordon Brothers has agreed to be the stalking horse bidder, setting the minimum bid for the auction. The company continues to actively solicit additional bids, and if competing qualified offers emerge, an auction will be held to maximize the value of the business.
Interim CEO Michael Prendergast acknowledged the company’s struggles in a statement:
“Since becoming a private company in April, the Board and management team have focused on strategic initiatives to manage costs and drive value. However, the last several years have presented significant and lasting challenges in the retail environment. Combined with our current financial position and constrained inventory levels, we were forced to take this step. After careful consideration, we determined that initiating a court-supervised sale process is the best path to maximize value and explore opportunities for JOANN to continue operating.”
Prendergast also expressed gratitude to the company’s workforce, stating:
“On behalf of the Board and leadership, I want to thank our dedicated Team Members who continue to support our customers, sewists, quilters, crocheters, and crafters. We are committed to serving them during this process.”
Operations Continue During Bankruptcy
Despite the bankruptcy filing, JOANN remains committed to serving customers and maintaining business operations. The company has filed motions with the Court to uphold its commitments to employees and stakeholders, ensuring continued payment of wages, benefits, and vendor obligations. Additionally, JOANN seeks approval for the consensual use of cash collateral to maintain liquidity and support ongoing operations.
Interested parties can access court filings and financial restructuring details at JOANNRestructuring.com. Stakeholders may also contact JOANN’s claims agent, Kroll, for additional information via phone at (844) 712-2239 (U.S.) or (646) 863-7121 (international), or by email at Joann2025Info@ra.kroll.com.
JOANN has enlisted Kirkland & Ellis as its legal counsel, Centerview Partners LLC as its financial advisor, and Alvarez & Marsal North America, LLC as its restructuring advisor.
The future of JOANN remains uncertain as the sale process unfolds. With Gordon Brothers setting the floor for potential bids, the coming months will determine whether JOANN can find a buyer willing to keep its legacy alive. The company, which has been a staple in the crafting community for over 80 years, hopes this restructuring will provide an opportunity to continue operations and emerge stronger.
| The Texas stores closing will be: |
| Abilene 3206 South Clack Dr |
| Austin 9500 S IH 35 Frontage Rd |
| Dallas 6330 E Mockingbird Ln |
| Hurst 1439 W Pipeline Rd |
| Arlington 137 Merchants Row |
| Rockwall 1049 E. I.H. 30 |
| Denton 2640 West University Dr |
| Midlothian 2000 F.M. 663 |
| Lewisville 715 Hebron Parkway |
| Mesquite 19105 Lyndon B Johnson Fwy |
| Houston 15520 Fm 529 Rd |
| Katy 1219 North Fry Rd |
| Houston 9960 Old Katy Rd |
| Houston 290 Meyerland Plaza |
| Pharr 500 N. Jackson Rd |
| Odessa 6351 E. Hwy 191 |
| San Antonio 3142 Se Military Dr |
| Sherman 4127 N Hwy 75 |
See the complete list of stores that are expected to be closing here.
https://cdn.prod.website-files.com/67817680c8de2134544a40b6/67acb1fd7e85b6e6bb57cfe4_Store%20Closure%20List.pdf
For more updates, visit JOANNRestructuring.com.
About JOANNFor more than 80 years, JOANN has inspired creativity in the hearts, hands, and minds of its customers. From a single storefront in Cleveland, Ohio, the nation’s leader in sewing and fabrics with one of the largest arts and crafts offerings has grown to include more than 800 stores across 49 states and a robust ecommerce business. With the goal of helping every customer find their creative Happy Place, JOANN serves as a convenient single source for all
