💥New Chapter 11 Bankruptcy Filing - JOANN Inc. ($JOAN)💥
Retailer files a prepackaged chapter 11 to de-lever balance sheet.
JOANN Inc. ($JOAN) really is the gift that keeps on giving.
In a December ‘23 piece regarding JOAN’s poor 3Q’24 results, we said:
“We’re guessing that the company is really beginning to feel the squeeze from not just poor operating performance but from vendors/suppliers as well. The loan and equity pricing — plus rumors of advisors being in place — probably doesn’t instill a whole lot of confidence. And so we’re on pins and needles here. And we’re sure management is as well.”
The needle has hit the yarn (eh, sounded better in our heads), and on March 18, 2024, JOANN, and nine affiliates (collectively, the “debtors”) have finally filed prepackaged chapter 11 bankruptcy cases in the District of Delaware (Judge Goldblatt).
We saw this coming a mile away:
What we didn’t see coming was that this thing would come in as a prepack!