JOANN to Remain Open as Company Initiates Voluntary Chapter 11 Process 
to Maximize Business Value 
 
   Gordon Brothers to Serve as "Stalking Horse" Bidder in Court-Supervised 
Sale Process 
 
   Company Continues to Serve Customers In-Store and Online During the 
Process 
 
   HUDSON, Ohio, Jan. 15, 2025 (GLOBE NEWSWIRE) -- JOANN Inc. ("JOANN" or 
the "Company"), the nation's category leader in sewing and fabrics with 
one of the largest arts and crafts offerings, today announced that it 
has commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy 
Court for the District of Delaware (the "Court") to facilitate a sale 
process to maximize the value of its business. JOANN stores and 
JOANN.com are open in the ordinary course and continue to serve 
customers. Team Members are continuing to receive pay and benefits. 
 
   The Company is seeking Court approval to commence a process for the sale 
of substantially all of its assets under Section 363 of the U.S. 
Bankruptcy Code pursuant to which Gordon Brothers Retail Partners, LLC 
("Gordon Brothers") would serve as the "stalking horse" bidder. The 
proposed transaction is subject to higher and better offers, among other 
conditions. The Company continues to actively solicit alternate bids. If 
other qualified bids are submitted during the court-supervised sale 
processes, the Company plans to conduct an auction or auctions, with the 
stalking horse bid setting the floor for the auction processes. 
 
   "Since becoming a private company in April, the Board and management 
team have continued to execute on top- and bottom-line initiatives to 
manage costs and drive value," said Michael Prendergast, Interim Chief 
Executive Officer of JOANN. "However, the last several years have 
presented significant and lasting challenges in the retail environment, 
which, coupled with our current financial position and constrained 
inventory levels, forced us to take this step. After carefully reviewing 
all available strategic paths, we have determined that initiating a 
court-supervised sale process is the best course of action to maximize 
the value of the business. We hope that this process enables us to find 
a path that would allow JOANN to continue operating as a going concern." 
 
   Prendergast continued, "On behalf of the Board and leadership, I want to 
thank the thousands of JOANN Team Members across the nation for their 
dedication to our customers and mission, especially in light of 
everything our company has gone through in recent years. We remain 
committed to continuing to support them and serving our customers -- the 
sewists, quilters, crocheters, crafters and other creative enthusiasts 
we have served for more than 80 years -- during the process." 
 
   Through the filing of customary motions with the Court, the Company 
intends to uphold its commitments to customers, Team Members, and 
partners, including continued payment of employee wages and benefits. 
 
   The Company intends to seek approval for a consensual use of cash 
collateral to ensure it has the liquidity necessary to support its 
operations. 
 
   Additional information regarding JOANN's financial restructuring is 
available at JOANNRestructuring.com. Court filings and information 
regarding the claims process are available at 
https://cases.ra.kroll.com/Joann2025, by calling the 
Company's claims agent, Kroll, at (844) 712-2239 (toll-free in the U.S.) 
or (646) 863-7121 (for international calls), or by sending an email to 
Joann2025Info@ra.kroll.com. 
 
   Kirkland & Ellis is serving as legal counsel to JOANN, with Centerview 
Partners LLC serving as financial advisor and Alvarez & Marsal North 
America, LLC serving as restructuring advisor. 
 
   About JOANN 
 
   For 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 the supplies, guidance, and 
inspiration needed to achieve any project or passion. 
 
   Contacts 
 
   Amanda Hayes 
 
   Director, Corporate Engagement & Communications 
 
   amanda.hayes@joann.com 
 
   Michael Freitag / Meaghan Repko / Viveca Tress / Joycelyn Barnett 
 
   Joele Frank, Wilkinson Brimmer Katcher 
 
   (212) 355-4449 
 

(END) Dow Jones Newswires

January 15, 2025 05:32 ET (10:32 GMT)