On January 15, 2025, it was reported, Joann on Wednesday said it has filed under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware, with a plan to sell itself. The crafts retailer, whose stores and e-commerce site remain open for business, is asking the court to approve a sale of "substantially all of its assets," with Gordon Brothers as a stalking horse bidder. Joann filed for bankruptcy last March, exiting in April as a private company owned by its creditors. According to court documents filed this week, its liabilities range between $1 billion and $10 billion. As Joann lands in bankruptcy court for the second time in less than a year, Interim CEO Michael Prendergast cited "significant and lasting challenges in the retail environment," along with the retailer's own financial challenges and "constrained inventory levels." For now the company "intends to uphold its commitments to customers, Team Members, and partners, including continued payment of employee wages and benefits," per its press release. Joann last week confirmed the closure of stores in various states that the company described as "part of routine store location evaluation and optimization." The challenges with inventory made it particularly vulnerable, according to GlobalData Managing Director Neil Saunders. "Inventory issues have created out-of-stocks and gaps in assortments which has weakened its specialist status in the fabric and textiles space and caused customer defections," he said in an email. "The experience in many stores is also subpar, which has damaged sales." When Joann emerged from bankruptcy last time, it had very little room to maneuver because it still had debt, according to Saunders.
On January 9, 2025, it was reported, Sparc Group, an operating entity that is a joint venture of brand firm Authentic Brands Group, fast-fashion e-retailer Shein and Simon Property Group, has formed a joint venture, Catalyst Brands, with J.C. Penney. This entailed an all-equity transaction between them, with shareholders Simon, Brookfield Corporation, Authentic and Shein. Mall REITs Simon and Brookfield acquired J.C. Penney about four years ago, and Authentic later also took a stake. Marc Rosen, formerly J.C. Penney's CEO, is now CEO of Catalyst Brands, according to a company press release. Catalyst includes brands whose IP is owned by Authentic and whose operations were run by Sparc Aropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica plus J.C. Penney private labels and exclusives like Stafford, Arizona and Liz Claiborne. Catalyst has sold Reebok's U.S. operations and is exploring strategic options for Forever 21's operations; both have been owned by Authentic and run by Sparc. This shakeup of brands loops J.C. Penney into an operating entity involving familiar players, including many executives who, like Rosen, were already at Penney or Sparc. The company is based at J.C. Penney's headquarters in Plano, Texas, with offices in New York, Los Angeles and Seattle. It comes as Penney continues to struggle. In its most recent quarter, the department store's loss narrowed, but net sales tumbled 8%, and in the first nine months of the fiscal year, consolidated adjusted EBITDA plunged nearly 64% to $66 million.
On January 8, 2025, it was reported, Rize Home has acquired direct-to-consumer and furniture brand Floyd Home, making it the first acquisition in the industry for the new year. Rize, best known for its adjustable bed bases, mattresses and furniture, said the new partnership will allow for a seamless omnichannel experience for its retail partners and consumers. The company said the acquisition gives Floyd access to resources in manufacturing, logistics and sourcing, enhancing its ability to deliver furniture to its customers. Floyd Home is known for its sustainable and adaptable upholstery, bedroom, dining, home office and occasional products. This is the second acquisition the company has made in two years. In mid-2022, Rize acquired Glideaway. "Floyd Home has revolutionized the way we think about furniture design and sustainability," said David Jaffe, CEO of Rize Home. "By combining its design excellence with Rize Home's decades of operational expertise, we're creating a powerful foundation to meet the evolving needs of our customers." This partnership positions both brands to leverage their unique strengths. The company said it plans to expand product offerings, streamline operations and create an enhanced customer journey across online and instore channels. "Our partnership with Rize Home opens new doors for innovation and growth," said Tony Rotman, head of product for Floyd Home. "By integrating our design philosophy with Rize's operational capabilities, we're poised to scale sustainably and deliver even more value to our customers."
On December 30, 2024, it was reported, The RoomPlace, a Chicago-based retailer since 1912, has announced a Chapter 11 restructuring that will include the closing of eight stores. In a statement announcing the restructuring the company said the filing would enable it to, "align its costs with its projected sales and economic realities. "What was once viewed as taboo is now a strategic way to realignand strengthen a business," said Bruce Berman, CEO of The RoomPlace.Berman pointed to declining retail sales across the country and noted that the furniture industry has been particularly challenged. That decision includes winding down operations in outlying markets to concentrate on strengthening its 18 Chicagoland stores. As a result, six locations in and around Indianapolis, one store in Kenosha, Wis., and one store in Peoria, Ill., will be closed. "As a family-run business with strong community ties, it's not an easy decision to close stores and impact the people who work, shop and live in the affected communities," said Berman. As part of the wind down in Indianapolis, Kenosha and Peoria, The RoomPlace will contract with Planned Furniture Promotions (PFP) to conduct store closing sales. Existing orders placed prior to Feb. 2 will be fulfilled as promised. According to a spokesperson for the company 83 employees will be impacted by the closings. Dates have not been set for the closing of those stores at this writing. The spokesperson indicated that the store closings would enable the company to achieve profitability. For the 18 remaining Chicagoland locations, it will be business as usual, according to the company.
