All Joann Inc. fabric and crafts stores are shutting down following the winning bid at a Feb. 21 auction in the company’s Chapter 11 bankruptcy case.
Joann Inc. held an auction to sell off its assets. GA Joann Retail Partnership, a limited liability company of the GA Group asset disposition, valuation, appraisal and real estate services company, along with Wilmington Savings Fund Society as the prepetition term loan agent, was the winning bidder.
Pending court approval, it will oversee the closures of Joann’s remaining operations. Joann said its stores remain open as it conducts going-out-of-business sales.
A final sale hearing is scheduled Feb 26 to approve the asset sale, which clears the way for the winding down.
Hudson, Ohio-based Joann Inc. filed for Chapter 11 on Jan. 15 in the U.S. Bankruptcy Court for the District of Delaware to sell its business to maximize value.
On. Feb. 12, it filed a motion seeking approval to start closing about 500 of its 800 stores across the county. Court filings said there will be store-closing sales.
Two of the Northeast Florida area’s three Joann Inc. stores were on that closure list – at 6001 Argyle Forest Blvd. in the Argyle Village Shopping Center Southwest Jacksonville and at 463877 Florida 200 in the Village of Amelia in Yulee.
While Joann at 10261 River Marsh Drive in St. Johns Town Center was not on the list, it would be part of the final closing sales.
The joannrestructuring.com site reported that:
“Following a comprehensive sale process and auction, GA Group together with the Prepetition Term Loan Agent, was selected as having the winning bid to acquire substantially all of JOANN’s assets. Subject to court approval of the transaction, the winning bidders plan to wind-down ongoing operations and conduct going-out-of-business sales at all JOANN locations.”
It continued:
“We are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the negative impact on all JOANN Team Members, vendors, customers and communities. Subject to court approval of the sale transaction, we expect to begin, or in some cases continue, going-out-of-business sales at all locations immediately.”
It said “customers will have the opportunity to purchase our assortment at special prices during the going-out-of-business sales and can continue to shop at JOANN stores, JOANN.com, or on the JOANN mobile app.”
Joann has said it has served sewists, quilters, crocheters, crafters and other creative enthusiasts for more than 80 years. It says it has grown from a single store in Cleveland to become the nation’s leader in sewing and fabrics with one of the largest arts and crafts offerings in 49 states and online.