The winner of the auction for Hudson-based Joann was announced at approximately 6:20 p.m. on Saturday. The winning bidder, GA Joann Retail Partnership, is a collaboration between financial services company GA Group and Joann’s term lenders. The U.S. Bankruptcy Court for the District of Delaware has scheduled a hearing for formal approval of the auction results.
Unfortunately, Joann Inc. has announced the closure of all remaining stores nationwide. Despite the challenging circumstances, Scott Carpenter, CEO of GA Group’s Retail Solutions and Wholesale & Industrial Solutions teams, reassured that most closing Joann stores will remain open until the end of May.
In an effort to support Joann employees during this transition, new ownership plans to roll out a multimillion-dollar retention plan, grant time off for job interviews, and organize job fairs. Carpenter emphasized the commitment to helping employees close stores with empathy, professionalism, and efficiency.
The auction process involved intricate considerations for multiple lenders, including term loan lenders, asset-based revolving loan lenders, and first-in last-out lenders. These deliberations led to GA Joann Retail Partnership emerging as the successful bidder.
Despite the challenges Joann has faced, the company’s long-standing history with GA Group has laid a foundation for collaborative efforts. While the road ahead may be difficult, the new ownership is dedicated to navigating these changes with respect and support for employees and stakeholders.
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