JOANN to Remain Open as Company Initiates Voluntary Chapter 11 Process to Maximize Business Value

Company Overview - JOANN is a leading sewing and fabrics retailer with one of the largest arts and crafts offerings in the US, operating over 800 stores across 49 states and a robust ecommerce business [4] - The company has been inspiring creativity in customers for over 80 years, serving as a one-stop shop for supplies, guidance, and inspiration for creative projects [4] Financial Restructuring - JOANN has commenced voluntary Chapter 11 proceedings in the US Bankruptcy Court for the District of Delaware to facilitate a court-supervised sale process aimed at maximizing the value of the business [2] - The company intends to seek approval for a consensual use of cash collateral to ensure sufficient liquidity to support ongoing operations [3] - JOANN is seeking court approval to commence a process for the sale of substantially all of its assets under Section 363 of the US Bankruptcy Code, with Gordon Brothers Retail Partners, LLC serving as the "stalking horse" bidder [7] Sale Process - The proposed transaction with Gordon Brothers is subject to higher and better offers, and the company continues to actively solicit alternate bids [7] - If other qualified bids are submitted, JOANN plans to conduct an auction or auctions, with the stalking horse bid setting the floor for the auction processes [7] Operations During Restructuring - JOANN stores and JOANN com remain open and continue to serve customers in the ordinary course during the restructuring process [2] - Team Members are continuing to receive pay and benefits, and the company intends to uphold its commitments to customers, Team Members, and partners [1][2] Advisors - Kirkland & Ellis is serving as legal counsel to JOANN, with Centerview Partners LLC serving as financial advisor and Alvarez & Marsal North America, LLC serving as restructuring advisor [9]