A month after declaring bankruptcy, crafts retailer JoAnn reports it has not been able to find a buyer and will go out of business, closing all 800 stores. The end came quickly.
“The company is seeking court approval to begin a process for the sale of substantially all of its assets under section 363 of the Bankruptcy Code, pursuant to which Gordon Brothers Retail Partners would serve as the stalking horse bidder,” the company said in a statement on its website on January 15.
A stalking horse bidder is one that would set the floor for bids for the company’s assets. The winning bid would have to equal or be higher than that. In the end, there were no takers, at least none that would continue to operate the business.
JoAnn announced plans to sell off its assets to a buyer group which would likely liquidate everything in order to pay down debt. The company will go to bankruptcy court in Delaware this week to seek approval to move forward.
The chain that would become Joann Fabrics was founded in 1943, with a single store in Cleveland. The name was changed to Joann Fabrics in 1963. The company operates 800 stores in 49 states.
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