Joanne plans to become a private company after completing bankruptcy proceedings, which could be completed as early as next month.
“This agreement is an important step forward in addressing Joan's capital structure needs, continues to offer a best-in-class product assortment, and enhances our services,” said Scott Sekera, Chief Financial Officer of Joan. “It will provide us with the financial resources and flexibility we need to continue to do so.” Enjoy the customer experience wherever you shop. ”
Joanne is the latest specialty retailer to file for Chapter 11 bankruptcy protection in the face of declining sales as online retailers like Amazon drive away shoppers. Bed Bath & Beyond, Christmas Tree Shops and David's Bridal all filed for bankruptcy protection last year. (Amazon founder Jeff Bezos owns the Washington Post.)
While JoAnn remains a force to be reckoned with in the textiles industry, “it has lost customers to rivals in recent years,” said Neil Saunders, managing director at GlobalData, a business research and analysis firm. “Lower store standards and lower levels of customer service, in part due to layoffs, have made stores less desirable. And some shoppers looking for lower prices are turning to stores like Hobby Lobby. They are going to alternative stores.”
This story is in development and will be updated.
