The future of fabrics and craft retailer Joann’s should be known in two weeks.
The chain filed its Chapter 11 bankruptcy petition on Jan. 15, noting that it inked a deal with Gordon Brothers Retail Partners as the “stalking horse” bidder. The agreement has Gordon Brothers setting the base minimum for bidding in a court approved auction process. Joann’s is hoping for a better offer for the sale of its assets, preferably one that could keep its stores in operation.
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The bid deadline has been set for Feb. 12, and if no one plans to bid, then Gordon Brothers would be named the winning bidder and the auction slated for Feb. 14 would be canceled. If there is an auction, the results could be announced on Feb. 15, followed by a court hearing on Feb. 21 for approval of the buyer.
In the meantime, there are WARN (Worker Adjustment and Retraining Notification) notices that indicate the chain is preparing to lay off staff. The potential layoff list include 209 at a 635,000 square foot distribution center in Visalia, Calif., which Joann’s plans to shutter. Closure of the facility could mean the fabrics retailer might also be planning to close some store locations. The Visalia site supplies stores west of the Mississippi, as well as some doors in Ohio. The retail had planned some store closures prior to its Chapter 11 filing.
Also on the chopping block could be 359 workers at its Hudson headquarters distribution center in Ohio, should it fail to find a buyer to keep the operation intact. The online fulfillment center in West Jefferson, also in Ohio, could face job losses totaling 116. In addition, 662 staff members face the boot at the retailer’s headquarters and store support center if a going-concern buyer fails to step forward.
The specialty chain entered the Chapter 22 club earlier this month. It had previously filed for Chapter 11 in March 2024. A prepackaged deal with lenders allowed it to exit bankruptcy proceedings one month later.