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
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