Joann's victim of vulture capitalists

[Javaman]

?si=4YRSXNtRDVhiFpnB

[Srkdqltr]

1. Just like Sears. And a lot of other companies.

[MichMan]

2. Jo-Anns was a public company before they declared bankruptcy in March 2024 and was subsequently delisted from NASDAQ

Stock fell under $1 per share. They would have gone out of business regardless.

[Javaman]

4. maybe. they tried to save themselves after being destroyed by venture capitalists. nt

[MichMan]

7. How did venture capitalists cause a publicly owned company to declare bankruptcy & get de listed from stock exchange?

[Javaman]

8. did you not watch the video? it's pretty self explanatory.

from the video, prior to being bought out, Joann's as financially solvent. they were going to expand to 60 more stores. They had a solid stock listing.

[MichMan]

9. Weird, according to this NPR report they declared bankruptcy while they were public.

I'm not a financial expert, but it seems odd that a financially solvent company with a solid stock listing would be permitted by a court to declare bankruptcy, thus leaving its stockholders with zero. Surprised that the SEC would go along with that plan.

NPR March 18, 2024

Joann and certain affiliates have filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware.

As part of the court-supervised bankruptcy process, Joann expects to receive $132 million in new financing. It said it will also slice its funded debt by about $505 million, but that "customers[,] vendors, landlords, and other trade creditors will not see any disruption in services."

Additionally, Joann will become a private company again and will be delisted from the Nasdaq stock exchange, just two years after it went public in March 2021.

The company said in a December earnings report that its third-quarter net sales had dipped by 4.1% compared to the same period the year before, and its long-term debt was roughly $1.2 billion.

https://www.npr.org/2024/03/18/1239161958/joann-bankruptcy-crafts-fabrics

[Meowmee]

3. I think they were having issues with less purchases after a pandemic boom

I read an article about it, I will try to link that.
I will miss them a lot as I have purchased a lot good fabric etc. there on sales over the years. Including for 2 couches and several chairs which I nearly killed myself reupholstering a few years ago.

[Silent Type]

5. This is what happens when debt is downgraded and it's impossible to borrow. Same thing happened to Toyz-R-Us,

they couldn't borrow and were left with a Hail Mary using Private Equity. It kept them open another 5 years.

[IbogaProject]

6. The Reagan and Bush administrations laid the groundwork

They changed the tax rules to allow some of that looting to be tax free. Those tax alterations also allows for share buybacks which reduces taxable income and has gutted the wealthy and corporate share of our tax burden.