Fabric and crafts retail company JOANN Stores Inc. filed for bankruptcy for a second time in a year after facing financial difficulties in a challenging retail environment.
The company filed a petition for Chapter 11 bankruptcy at the U.S. Bankruptcy Court for the District of Delaware on Jan. 15, seeking court approval to sell “substantially all of its assets” to Massachusetts-based Gordon Brothers Retail Partners, according to a Jan. 15 statement from JOANN. Founded in the 1940s, the Ohio-based brand has approximately 850 stores spread across 49 states and employs around 19,000 people.
Gordon is a “stalking horse” bidder, referring to entities that set an initial bid on bankrupt company assets, thus protecting them from receiving unreasonably low bids. “The proposed transaction is subject to higher and better offers, among other conditions,” JOANN said. “The company continues to actively solicit alternate bids.” If there are qualified bids, JOANN will go ahead with auctions….