JOANN’s bankruptcy sale auction stretched over two days with lengthy deliberations between interested bidders – both companies specializing in liquidation. Who won?
The iconic fabrics and crafts retail chain filed for Chapter 11 bankruptcy protection for the second time in less than a year, signaling deep financial woes for the chain – citing sluggish sales, inventory shortages and a challenging retail environment as key factors.
Bidders were Gordon Brothers and GA JOANN Retail Partnership, LLC (collaboration between Great American Group + term lenders).
The sale auction was conducted by Kirkland & Ellis LLP in New York, the firm handling JOANN‘s bankruptcy, on February 21 and 22.
The winning bidder was GA JOANN Retail Partnership, LLC after upping their initial baseline offer to purchase JOANN’s assets.
As part of the ongoing Chapter 11 process, JOANN received court approval to begin closing approximately 500 stores across the nation in February 2025.
Great American Group, at this time, does not appear to have plans to keep the remaining JOANN stores open.
Great American Group CEO Scott Carpenter said during the auction call that most JOANN stores will stay open until the end of May and every item in every store will be discounted.
They are working on a multi-million dollar retention plan for company employees, with 90% of that budget going to stores.
Next up is the bankruptcy court sale hearing on February 26, where the judge has to approve the sale of assets to the winning bidder.
Disclaimer: I am NOT an attorney, this is not legal expertise.
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