Joann Fabrics and Crafts Bankruptcy
Joann Fabrics and Crafts Bankruptcy
Exhibit A
Proposed Order
Case 25-10068-CTG Doc 385-1 Filed 02/12/25 Page 2 of 30
)
In re: ) Chapter 11
)
JOANN INC., et al., 1 ) Case No. 25-10068 (CTG)
)
Debtors. ) (Jointly Administered)
)
) Re: Docket No. [●]
ORDER
(I) AUTHORIZING
AND APPROVING THE
CONDUCT OF STORE CLOSING SALES,
WITH SUCH SALES TO BE FREE AND CLEAR OF ALL LIENS,
CLAIMS, AND ENCUMBRANCES AND (II) GRANTING RELATED RELIEF
Upon the motion (the “Motion”) 2 of the above-captioned debtors and debtors in possession
(collectively, the “Debtors”) for the entry of an order (this “Order”), (a) authorizing and approving
the initiation of store closing or similar themed sales at the stores identified on Schedule 1 (the
“Store Closings” and, collectively, the “Initial Closing Stores”); (b) authorizing the Debtors to
conduct Store Closings at additional stores (the “Additional Closing Stores” if any, and together
with the Initial Closing Stores, the “Closing Stores”) at a later date or dates pursuant to the
procedures set forth herein, with all such sales to be free and clear of all liens, claims, and
encumbrances (the “Store Closing Sales”), in accordance with the terms of the store closing
procedures (the “Store Closing Procedures”), attached as Schedule 2; (c) approving modifications
1
The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification
number, are: JOANN Inc. (5540); Needle Holdings LLC (3814); Jo-Ann Stores, LLC (0629); Creative Tech
Solutions LLC (6734); Creativebug, LLC (3208); WeaveUp, Inc. (5633); JAS Aviation, LLC (9570); joann.com,
LLC (1594); JOANN Ditto Holdings Inc. (9652); Dittopatterns LLC (0452); JOANN Holdings 1, LLC (9030);
JOANN Holdings 2, LLC (6408); and Jo-Ann Stores Support Center, Inc. (5027). The Debtors’ mailing address
is 5555 Darrow Road, Hudson, Ohio 44236.
2
Capitalized terms used but not otherwise defined herein have the meanings ascribed to them in the Motion.
Case 25-10068-CTG Doc 385-1 Filed 02/12/25 Page 3 of 30
to the Gift Card Program and Refund and Exchange Policy; and (d) granting related relief, all as
more fully set forth in the Motion; and upon the First Day Declaration; and the United States
District Court for the District of Delaware having jurisdiction over this matter pursuant to 28
U.S.C. § 1334, which was referred to the Court under 28 U.S.C. § 157 and the Amended Standing
Order of Reference from the United States District Court for the District of Delaware, dated
February 29, 2012; and this Court having found that this is a core proceeding pursuant to 28 U.S.C.
§ 157(b)(2); and this Court having found that venue of this proceeding and the Motion in this
district is proper pursuant to 28 U.S.C. §§ 1408 and 1409; and this Court having found that the
relief requested in the Motion is in the best interests of the Debtors’ estates, their creditors, and
other parties in interest; and this Court having found that the Debtors’ notice of the Motion and
opportunity for a hearing on the Motion were appropriate and no other notice need be provided;
and this Court having reviewed the Motion and having heard the statements in support of the relief
requested therein, if any, at a hearing before this Court (the “Hearing”); and this Court having
determined that the legal and factual bases set forth in the Motion and at the Hearing establish just
cause for the relief granted herein; and upon all of the proceedings had before this Court; and after
due deliberation and sufficient cause appearing therefor, it is HEREBY ORDERED THAT: 3
A. The Debtors have advanced sound business reasons for adopting the Store Closing
B. The Store Closing Procedures, which are attached hereto as Schedule 2, are
reasonable and appropriate, and the conduct of the Store Closing Sales in
accordance with the Store Closing Procedures will provide an efficient means for
3
Findings of fact shall be construed as conclusions of law and conclusions of law shall be construed as findings of
fact where appropriate. See Fed. R. Bankr. P. 7052.
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the Debtors to dispose of the Store Closing Assets and are in the best interest of the
Debtors’ estates.
C. The relief set forth herein is necessary to avoid immediate and irreparable harm to
the Debtors and their estates and the Debtors have demonstrated good, sufficient
and sound business purposes and justifications for the relief approved herein.
D. The Store Closings and Store Closing Sales are in the best interest of the Debtors’
estates.
E. The Dispute Resolution Procedures are fair and reasonable and comply with
applicable law.
F. The Debtors have represented that they intend to neither sell nor lease personally
G. The entry of this Order is in the best interests of the Debtors and their estates; and
To the extent any conflict between this Order and the Store Closing Procedures, the
The Debtors are authorized, pursuant to sections 105(a) and 363(b)(1) of the
Bankruptcy Code, to immediately conduct the Store Closing Sales at the Closing Stores in
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All entities that are presently in possession of some or all of the Inventory or FF&E
in which the Debtors hold an interest that are or may be subject to this Order hereby are directed
Neither the Debtors nor any of their officers, employees, or agents shall be required
to obtain the approval of any third party, including (without limitation) any Governmental Unit (as
defined under section 101(27) of the Bankruptcy Code) or landlord, to conduct the Store Closing
Sales and Store Closings and to take the related actions authorized herein.
All newspapers and other advertising media in which the Store Closing Sales and
Store Closings may be advertised and all landlords are directed to accept this Order as binding
authority so as to authorize the Debtors to conduct the Store Closing Sales and Store Closings,
including, without limitation, to conduct and advertise the sale of the merchandise and FF&E in
the manner contemplated by and in accordance with this Order and the Store Closing Procedures.
Subject to the Dispute Resolution Procedures provided for in this Order, the
Debtors are hereby authorized to take such actions as may be necessary and appropriate to conduct
the Store Closing Sales and Store Closings without necessity of further order of this Court as
provided in the Store Closing Procedures (subject to any Side Letters, as defined below), including,
but not limited to, advertising the sale as a “store closing sale”, “sale on everything”, “everything
must go”, or similar-themed sales as contemplated in the Store Closing Procedures through the
posting of signs (including the use of exterior banners at non-enclosed mall closing locations, and
at enclosed mall closing locations to the extent the applicable closing location entrance does not
require entry into the enclosed mall common area), use of signwalkers, A-frames, and other street
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Except as expressly provided in the Store Closing Procedures (subject to any Side
Letter (as defined herein)), the sale of the Inventory and FF&E shall be conducted by the Debtors
notwithstanding any restrictive provision of any lease, sublease, restrictive covenant, or other
agreement to the contrary relative to occupancy affecting or purporting to restrict the conduct of
the Store Closings or the Store Closing Sales (including the sale of the Inventory and FF&E),
abandonment of assets, or “going dark” provisions. Any such restrictions shall not be enforceable
in conjunction with the Store Closings or the Store Closing Sales. Breach of any such provisions
described above in conjunction with the Store Closings or the Store Closing Sales shall not
constitute a default under a lease or provide a basis to terminate the lease; provided that the Store
Closings and Store Closing Sales are conducted in accordance with the terms of this Order, any
Side Letter (as defined below), and the Store Closing Procedures. The Debtors and the landlords
of the Closing Stores are authorized to enter into agreements (“Side Letters”) between themselves
modifying the Store Closing Procedures without further order of the Court, and such Side Letters
shall be binding as among the Debtors and any such landlords, provided that, to the extent the
liquidation of ABL Priority Collateral is involved, the Debtor shall consult with the Prepetition
ABL Agent and the Prepetition FILO Agent (i) before entering into any agreement, including a
Side Letter, regarding any amendments or modifications to the Store Closing Procedures, and (ii)
before abandoning any ABL Priority Collateral located at the Closing Stores, provided further that
nothing in such Side Letters affects the provisions of this Order, except with respect to the conduct
of the Store Closing Sales. In the event of any conflict between the Store Closing Procedures, any
Side Letter, and this Order, the terms of such Side Letter shall control.
person or entity, including, but not limited to, any landlord, licensor, service providers, utilities, or
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creditors, shall take any action to directly or indirectly prevent, interfere with, or otherwise hinder
consummation of the Store Closing Sales or the sale of Inventory or FF&E, or the advertising and
promotion (including the posting of signs and exterior banners or the use of sign-walkers) of such
sales, as applicable, and all such parties and persons of every nature and description, including,
but not limited to, any landlord, licensor, service providers, utilities, and creditors and all those
acting for or on behalf of such parties, are prohibited and enjoined from (a) interfering in any way
with, obstructing, or otherwise impeding, the conduct of the Store Closings (including the sale of
inventory or FF&E), and/or (b) instituting any action or proceeding in any court (other than in the
Bankruptcy Court) or administrative body seeking an order or judgment against, among others,
the Debtors, or the landlords at the closing locations that might in any way directly or indirectly
obstruct or otherwise interfere with or adversely affect the conduct of the Store Closing Sales or
sale of the Inventory or FF&E, or other liquidation sales at the closing locations and/or seek to
recover damages for breach(es) of covenants or provisions in any lease, sublease, license, or
All in-store sales of Store Closing Assets shall be “as is” and final. Conspicuous
signs stating that “all sales are final” and “as is” will be posted at the point-of-sale areas at all
Closing Stores. As to the Closing Stores, all state and federal laws relating to implied warranties
for latent defects shall be complied with and are not superseded by the sale of said goods or the
The Debtors are directed to remit all taxes arising from the Store Closing Sales to
the applicable Governmental Units as and when due, provided that in the case of a bona fide dispute
the Debtors are only directed to pay such taxes upon the resolution of such dispute, if and to the
extent that the dispute is decided in favor of the applicable Governmental Unit. For the avoidance
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of doubt, sales taxes collected and held in trust by the Debtors shall not be used to pay any creditor
or any other party, other than the applicable Governmental Unit for which the sales taxes are
collected. This Order does not enjoin, suspend, or restrain the assessment, levy, or collection of
any tax under state, provincial or federal law, and does not constitute a declaratory judgment with
respect to any party’s liability for taxes under state, provincial or federal law.
Pursuant to section 363(f) of the Bankruptcy Code, the Debtors are authorized to
sell the Store Closing Assets and all sales of Store Closing Assets shall be free and clear of any
and all liens, claims, encumbrances, and other interests; provided, however, that any such liens,
claims, encumbrances, and other interests shall attach to the proceeds of the sale of the Store
Closing Assets with the same validity, in the amount, with the same priority as, and to the same
extent that any such liens, claims, and encumbrances have with respect to the Store Closing Assets,
subject to any claims and defenses that the Debtors may possess with respect thereto.
The Debtors (as the case may be) are authorized and empowered to transfer Store
Closing Assets among, and into, the Closing Stores in accordance with the Store Closing
Procedures, as applicable. The Debtors may sell their FF&E and abandon the same, in each case,
as provided for and in accordance with the terms of the Store Closing Procedures (as may be
Notwithstanding anything to the contrary contained herein, the Debtors shall not
sell or abandon any FF&E until after April 18, 2025. After April 18, 2025, any cash proceeds
Neither the Store Closing Procedures nor this Order authorize the Debtors to
transfer or sell to any party the personal identifying information (which means information that
alone or in conjunction with other information identifies an individual, including but not limited
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to an individual’s first name (or initial) and last name, physical address, electronic address,
telephone number, social security number, date of birth, government-issued identification number,
account number and credit or debit card number) (“PII”) of any customers unless such sale or
transfer is permitted by the Debtors’ privacy policies and applicable state, provincial or federal
privacy and/or identity theft prevention laws and rules (collectively, the “Applicable Privacy
Laws”).
The Debtors shall remove or cause to be removed any confidential and/or PII in
any of the Debtors hardware, software, computers or cash registers or similar equipment which are
Nothing herein shall limit the Debtors’ right to pause or discontinue a Store Closing
Nothing herein is intended to affect any rights of any applicable government unit
to enforce any law affecting the Debtors’ conduct of any store closing sale that occurred before
To the extent that the Debtors seek to conduct Store Closing Sales at any Additional
Closing Store, the Store Closing Procedures and this Order shall apply to the Additional Closing
Stores.
Prior to conducting the Store Closing Sales at any Additional Closing Store, the
Debtors will file a list including such Additional Closing Store with this Court (each, an
“Additional Closing Store List”), and serve a notice of their intent to conduct the Store Closing
Sales at the Additional Closing Store on the applicable landlords (collectively, the “Additional
Closing Store Landlords”), the Additional Closing Store Landlords’ counsel of record (if known),
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and other interested parties by email (to the extent available to the Debtors) or overnight mail
within three (3) business days of filing the Additional Closing Store List. With respect to
Additional Closing Store Landlords, the Debtors will mail, if applicable, such notice to the notice
address set forth in the lease for such Additional Closing Store (or, if none, at the last known
The Additional Closing Store Landlords and any interested parties shall have ten
(10) days after service of the applicable Additional Closing Store List to object to the application
of this Order to an Additional Closing Store or request that the Debtors enter into a Side Letter
with the applicable landlord of the Additional Closing Store as permitted by paragraph 10 herein.
If no timely objections are filed with respect to the application of this Order to an Additional
Closing Store, the Debtors are authorized, pursuant to sections 105(a), and 363(b) and (f) of the
Bankruptcy Code, to proceed with conducting the Store Closing Sales at the Additional Closing
Stores in accordance with this Order and the Store Closing Procedures. If any objections are filed
with respect to the application of this Order, to an Additional Closing Store, and such objections
are not resolved, the objections and the application of this Order to the Additional Closing Store
will be considered by the Court at the next regularly scheduled omnibus hearing, subject to the
rights of any party to seek relief on an emergency basis on shortened notice, to the extent necessary.
Any objections as to particular Additional Closing Stores will not affect the Debtors’ rights to
Fourteen (14) days following the entry of this Order, the Debtors will no longer
accept gift cards on the ecommerce platform or in their retail stores. All such validly-issued gift
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cards will be deemed to have no remaining value. Notwithstanding any policy or state law to the
contrary, the gift cards may not be redeemed for cash at any time.
Fourteen (14) days following the entry of this Order, the Debtors will no longer
accept refunds, returns, or exchanges of merchandise sold in the Debtors’ retail stores or on the
As of the date of the entry of this Order, the sale of all items in the Debtors’ retail
Nothing in this Order, the Store Closing Procedures, or any Side Letter releases,
nullifies, or enjoins the enforcement of any liability to a Governmental Unit under environmental
laws or regulations (or any associated liabilities for penalties, damages, cost recovery, or injunctive
relief) to which any entity would be subject as the owner, lessor, lessee, or operator of the property
after the date of entry of this Order. Nothing contained in this Order, the Store Closing Procedures,
or any Side Letter shall in any way: (a) diminish the obligation of any entity to comply with
environmental laws; or (b) diminish the obligations of the Debtors to comply with environmental
laws consistent with their rights and obligations as debtors in possession under the Bankruptcy
Code. The Store Closings and the Store Closing Sales shall not be exempt from laws of general
applicability, including, without limitation, public health and safety, criminal, tax, (including, but
not limited to, the collection of sales taxes), labor, employment, environmental, antitrust, fair
competition, traffic and consumer protection laws, including consumer laws regulating deceptive
practices and false advertising, consumer protection, the sale of gift certificates, layaway
programs, return of goods, express or implied warranties of goods, and “weights and measures”
regulation and monitoring (collectively, “General Laws”). Nothing in this Order, the Store Closing
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Procedures, or any Side Letter shall alter or affect obligations to comply with all applicable federal
Safety Laws and regulations. Nothing in this Order shall be deemed to bar any Governmental Unit
(as such term is defined in section 101(47) of the Bankruptcy Code) from enforcing General Laws
in the applicable non-bankruptcy forum, subject to the Debtors’ rights to assert in that forum or
before this Court, that any such laws are not in fact General Laws or that such enforcement is
impermissible under the Bankruptcy Code or this Order. Notwithstanding any other provision in
this Order, no party waives any rights to argue any position with respect to whether the conduct
was in compliance with this Order and/or any applicable law, or that enforcement of such
applicable law is preempted by the Bankruptcy Code. Nothing in this Order shall be deemed to
To the extent that the sale of Store Closing Assets is subject to any Liquidation Sale
Laws, including any federal, state or local statute, ordinance, rule, or licensing requirement
directed at regulating “going out of business,” “store closing,” or similar inventory liquidation
sales, or bulk sale laws, laws restricting safe, professional and non-deceptive, customary
advertising such as signs, banners, signage, and use of sign-walkers solely in connection with the
sale of the Store Closing Assets, including ordinances establishing license or permit requirements,
waiting periods, time limits or bulk sale restrictions that would otherwise apply solely to the sale
of the Store Closing Assets, the dispute resolution procedures in this section shall apply and the
(A) Provided that the Store Closing Sales are conducted in accordance
with this Order and the Store Closing Procedures, the Debtors and
the Debtors’ landlords, shall be deemed to be in compliance with
any requirements of all county, parish, or municipal or other local
government (hereinafter referred to as “Local”) and State
requirements governing the conduct of the Store Closing Sales of
the Store Closing Assets, including but not limited to Local statutes,
regulation and ordinances establishing licensing or permitting
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(B) Within three (3) business days after entry of this Order, the Debtors
will serve by first-class mail, copies of this Order, the proposed
Final Order, and the Store Closing Procedures on the following: (a)
the Attorney General’s office for each state where the Store Closing
Sales are being held; (b) the county consumer protection agency or
similar agency for each county where the Store Closing Sales are
being held; (c) the division of consumer protection for each state
where the Store Closing Sales are being held; (d) the landlords, and
any known counsel for the landlords, if any, for the Closing Stores;
and (e) any subtenants (if any) under the leases with respect to the
Closing Stores (collectively, the “Dispute Notice Parties”).
(C) With respect to any Additional Closing Stores, within three (3)
business days after filing any Additional Closing Store List with the
Court, the Debtors will serve by first-class mail, copies of the Order
and the Store Closing Procedures on the Dispute Notice Parties.
(D) To the extent that there is a dispute arising from or relating to the
Store Closing Sales, this Order, or the Store Closing Procedures,
which dispute relates to any Liquidation Sale Laws (a “Reserved
Dispute”), the Court shall retain exclusive jurisdiction to resolve the
Reserved Dispute. Within ten (10) days following entry of this
Order, any Governmental Unit may assert that a Reserved Dispute
exists by sending a notice (the “Dispute Notice”) explaining the
nature of the dispute to: (a) the Debtors, JOANN Inc., 5555 Darrow
Road, Hudson, Ohio 44236, Attn.: Ann Aber, EVP, Chief Legal and
Human Resources Officer; (b) proposed co-counsel to the Debtors,
(i) Kirkland & Ellis LLP, 601 Lexington Avenue, New York, New
York 10022, Attn.: Aparna Yenamandra, P.C.
([email protected]) and 333 West Wolf Point
Plaza, Chicago Illinois 60654, Attn.: Jeffrey Michalik
([email protected]), and Lindsey Blumenthal
([email protected]) and (ii) Cole Schotz P.C., 500
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(E) In the event that a Dispute Resolution Motion is filed, nothing in this
Order or the Final Order, as applicable, shall preclude the Debtors,
a landlord, or any other interested party from asserting (A) that the
provisions of any Liquidation Sale Laws are preempted by the
Bankruptcy Code, or (B) that neither the terms of this Order or the
Final Order nor the conduct of the Debtors pursuant to this Order,
violates such Liquidation Sale Laws. Filing a Dispute Resolution
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Motion as set forth herein shall not be deemed to affect the finality
of this Order or to limit or interfere with the Debtors’ ability to
conduct or to continue to conduct the Store Closing Sales pursuant
to this Order, as applicable, absent further order of the Court. Upon
the entry of this Order, the Court grants authority for the Debtors to
conduct the Store Closing Sales pursuant to the terms of this Order
and the Store Closing Procedures (as may be modified by any Side
Letters) and to take all actions reasonably related thereto or arising
in connection therewith. The Governmental Unit will be entitled to
assert any jurisdictional, procedural, or substantive arguments it
wishes with respect to the requirements of its Liquidation Sale Laws
or the lack of any preemption of such Liquidation Sale Laws by the
Bankruptcy Code. Nothing in this Order will constitute a ruling with
respect to any issues to be raised in any Dispute Resolution Motion.
(F) If, at any time, a dispute arises between the Debtors and a
Governmental Unit as to whether a particular law is a Liquidation
Sale Law, and subject to any provisions contained in this Order
related to the Liquidation Sale Laws, then any party to that dispute
may utilize the provisions of subparagraphs (D) and (E) above by
serving a notice to the other party and proceeding thereunder in
accordance with those paragraphs. Any determination with respect
to whether a particular law is a Liquidation Sale Law shall be made
de novo.
Subject to paragraphs 27 and 28 above, each and every federal, state, or Local
agency, departmental, or Governmental Unit with regulatory authority over the Store Closing Sales
and all newspapers and other advertising media in which the Store Closing Sales are advertised
shall consider this Order as binding authority that no further approval, license, or permit of any
Governmental Unit shall be required, nor shall the Debtors be required to post any bond, to conduct
Provided that the Store Closing Sales are conducted in accordance with the terms
of this Order and the Store Closing Procedures (as may be modified by Side Letters) and in light
of the provisions in the laws that exempt court-ordered sales from their provisions, the Debtors
shall be presumed to be in compliance with any Liquidation Sale Laws and are authorized to
conduct the Store Closing Sales in accordance with the terms of this Order and the Store Closing
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Procedures (as may be modified by Side Letters) without the necessity of further showing
Nothing in this Order, the Store Closing Procedures, or any Side Letter releases,
nullifies, or enjoins the enforcement of any liability to a Governmental Unit under environmental
laws or regulations (or any associated liabilities for penalties, damages, cost recovery, or injunctive
relief) to which any entity would be subject as the owner, lessor, lessee, or operator of the property
after the date of entry of this Order. Nothing contained in this Order, the Store Closing Procedures,
or any Side Letter shall in any way: (a) diminish the obligation of any entity to comply with
environmental laws; or (b) diminish the obligations of the Debtors to comply with environmental
laws consistent with their rights and obligations as debtors in possession under the Bankruptcy
Code.
use of sign-walkers, banners, and other advertising to the Store Closing Sales and the Store
Closings, to the extent that disputes arise during the course of the Store Closing Sales regarding
laws regulating the use of sign-walkers, banners, or other advertising and the Debtors are unable
to resolve the matter consensually, any party may request an immediate telephonic hearing with
this Court. Such hearing will, to the extent practicable and subject to the Court’s availability, be
scheduled initially no later than the earlier of (a) the Hearing or (b) within three (3) business days
of such request; provided, that, notice of such hearing will be promptly provided to the Notice
Parties, including the Debtors, Committee, and any impacted landlord (and their counsel, if any).
This scheduling procedure shall not be deemed to preclude additional hearings for the presentation
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Notwithstanding the relief granted in this Order and any actions taken pursuant to
such relief (including any payment made in accordance with this Order), nothing in this Order is
intended as or shall be construed or deemed to be: (a) an implication or admission as to the amount
of, basis for, or validity of any particular claim against the Debtors under the Bankruptcy Code or
other applicable non-bankruptcy law; (b) a waiver of the Debtors’ or any other party in interest’s
rights to dispute any particular claim on any grounds; (c) a promise or requirement to pay any
particular claim; (d) an implication, admission, or finding that any particular claim is an
administrative expense claim, other priority claim, or otherwise of a type specified or defined in
this Order or the Motion or any order granting the relief requested by the Motion; (e) a request or
authorization to assume, adopt, or reject any agreement, contract, or lease pursuant to section 365
of the Bankruptcy Code; (f) an admission as to the validity, priority, enforceability, or perfection
of any lien on, security interest in, or other encumbrance on property of the Debtors’ estates; or
(g) a waiver or limitation of the Debtors’ or any other party in interest’s claims, causes of action,
or other rights under the Bankruptcy Code or any other applicable law. Any payment made
pursuant to this Order is not intended and should not be construed as an admission as to the validity,
priority, or amount of any particular claim or a waiver of the Debtors’ or any other party in
authorization provided pursuant to this Order, including the application of any proceeds from the
sale or other asset dispositions contemplated herein, shall be subject to any interim and final orders,
as applicable, approving the use of cash collateral, and any budgets in connection therewith
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No payment may be made by the Debtors to, or for the benefit of, any non-Debtor
Insider (as defined in section 101 of the Bankruptcy Code) or any non-Debtor affiliate of or related
party to any such Insider pursuant to this Order without further court approval on notice to parties
in interest.
The banks and financial institutions on which checks were drawn or electronic
payment requests made in payment of the prepetition obligations approved herein are authorized
to receive, process, honor, and pay all such checks and electronic payment requests when presented
for payment, and all such banks and financial institutions are authorized to rely on the Debtors’
designation of any particular check or electronic payment request as approved by this Order.
The Debtors are authorized, but not directed, to issue postpetition checks, or to
effect postpetition fund transfer requests, in replacement of any checks or fund transfer requests
that are dishonored as a consequence of these chapter 11 cases with respect to prepetition amounts
Notice of the Motion as provided therein shall be deemed good and sufficient notice
of the Motion and the requirements of Bankruptcy Rule 6004(a) and the Local Rules are satisfied
by such notice.
Notwithstanding Bankruptcy Rule 6004(h), the terms and conditions of this Order
The Debtors are authorized to take all actions necessary to effectuate the relief
This Court retains jurisdiction with respect to all matters arising from or related to
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This Court shall retain jurisdiction with regard to all issues or disputes relating to
this Order, including, but not limited to, (a) any claim or issue relating to any efforts by any party
or person to prohibit, restrict or in any way limit banner and sign-walker advertising, including
with respect to any allegations that such advertising is not being conducted in a safe, professional,
and non-deceptive manner, (b) any claim of the Debtors and the landlords for protection from
interference with the Store Closings or Store Closing Sales, (c) any other disputes related to the
Store Closings or Store Closing Sales, and (d) protect the Debtors against any assertions of any
liens, claims, encumbrances, and other interests. No such parties or person shall take any action in
respect of the Debtors, the landlords, the Store Closings, or the Store Closing Sales until this Court
has resolved such dispute. This Court shall hear the request of such parties or persons with respect
to any such disputes on an expedited basis, as may be appropriate under the circumstances.
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Schedule 1
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3
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4
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Schedule 2
1. The Store Closing Sales shall be conducted so that the Closing Stores in which sales are to
occur will remain open no longer than during the normal hours of operation or such hours
as otherwise provided for in the respective leases for the Closing Stores.
2. The Store Closing Sales shall be conducted in accordance with applicable state and local
“Blue Laws”, where applicable, so that no Store Closing Sale shall be conducted on Sunday
unless the Debtors had been operating such Closing Store on a Sunday prior to the
commencement of the Store Closing Sales.
3. On “shopping center” property, the Debtors shall not distribute handbills, leaflets or other
written materials to customers outside of any Closing Stores’ premises, unless permitted
by the lease or, if distribution is customary in the “shopping center” in which such Closing
Store is located; provided that the Debtors may solicit customers in the Closing Stores
themselves. On “shopping center” property, the Debtors shall not use any flashing lights
or amplified sound to advertise the Store Closing Sales or solicit customers, except as
permitted under the applicable lease or agreed to by the landlord.
4. The Debtors shall have the right to use and sell the Store Closing Assets. The Debtors may
advertise the sale of the Store Closing Assets in a manner consistent with these Store
Closing Procedures. The purchasers of any of the Store Closing Assets sold during the
Store Closing Sales shall be permitted to remove the Store Closing Assets either through
the back or alternative shipping areas at any time, or through other areas after store business
hours; provided, however, that the foregoing shall not apply to the sale of de minimis Store
Closing Assets, whereby the item(s) can be carried out of the store in a shopping bag.
5. At the conclusion of the Store Closing Sale, the Debtors shall vacate the Closing Stores;
provided that the Debtors may abandon any furniture, fixtures, and equipment (including,
but not limited to, machinery, rolling stock, office equipment and personal property, and
conveyor systems and racking) (“FF&E”) not sold in the Store Closing Sales at the
conclusion of the Store Closing Sales (the “Termination Date”), without cost or liability of
any kind to the Debtors. All personal property and FF&E remaining in the stores subject
to the Lease on or after the Closing Date shall be deemed abandoned pursuant to section
554 of the Bankruptcy Code, as of the Closing Date. Landlord may, in its sole discretion
and without further order of this Court, utilize and/or dispose of such property without
notice or liability to the Debtors or any consenting third parties and, to the extent
applicable, the automatic stay is modified to allow such disposition; provided that, the
Debtors shall not sell or abandon any property that the Debtors know is not owned by the
Debtors; provided further, that the Debtors will either (a) provide for the return of such
property to the Debtors’ headquarters or (b) return such property to the applicable lessor,
or other owner of the property; provided, however, that the Debtors are not aware of any
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Capitalized terms used but not defined in these Store Closing Procedures have the meanings given to them in the
Motion of Debtors for Entry of an Order (I) Authorizing and Approving the Conduct of Store Closing Sales, With
Such Sales to be Free and Clear of All Liens, Claims, and Encumbrances, and (II) Granting Related Relief.
Case 25-10068-CTG Doc 385-1 Filed 02/12/25 Page 28 of 30
other parties with interests in the FF&E; provided further, however, that the Debtors may
abandon property owned by the applicable Landlord at the applicable store. For the
avoidance of doubt, as of the Termination Date, the Debtors may abandon, in place and
without further responsibility or liability of any kind, any FF&E.
6. The Debtors may advertise the Store Closing Sales as “store closing,” “sale on everything,”
“everything must go,” “everything on sale,” or similar-themed sales. The Debtors may
also have a “countdown to closing” sign prominently displayed in a manner consistent with
these Store Closing Procedures.
7. The Debtors shall be permitted to utilize sign-walkers, display, hanging signs, and interior
banners in connection with the Store Closing Sales; provided that such sign walkers,
display, hanging signs, and interior banners shall be professionally produced and hung in
a professional manner. The Debtors shall not use neon or day-glo on its sign walkers,
display, hanging signs, or interior banners. Furthermore, with respect to enclosed mall
locations, no exterior signs or signs in common areas of a mall shall be used unless
otherwise expressly permitted in these Store Closing Procedures. In addition, the Debtors
shall be permitted to utilize exterior banners at (i) non-enclosed mall Closing Stores and
(ii) enclosed mall Closing Stores to the extent the entrance to the applicable Closing Store
does not require entry into the enclosed mall common area; provided, however, that such
banners shall be located or hung so as to make clear that the Store Closing Sales are being
conducted only at the affected Closing Store, and shall not be wider than the storefront of
the Closing Store. In addition, the Debtors shall be permitted to utilize sign walkers in a
safe and professional manner and in accordance with the terms of the Order. Nothing
contained in these Store Closing Procedures shall be construed to create or impose upon
the Debtors any additional restrictions not contained in the applicable lease agreement.
8. Conspicuous signs shall be posted in the cash register areas of each of the affected Closing
Stores to effect that “all sales are final.”
9. Except with respect to the hanging of exterior banners, the Debtors shall not make any
alterations to the storefront or exterior walls of any Closing Stores, except as authorized by
the applicable lease.
10. The Debtors shall not make any alterations to interior or exterior Closing Store lighting,
except as authorized by the applicable lease. No property of the landlord of a Closing Store
shall be removed or sold during the Store Closing Sales. The hanging of exterior banners
or in-Closing Store signage and banners shall not constitute an alteration to a Closing Store.
11. The Debtors shall keep Closing Store premises and surrounding areas clear and orderly
consistent with present practices.
12. The Debtors and the landlord of any Store are authorized to enter into Side Letters without
further order of the Court, provided that such agreements do not have a material adverse
effect on the Debtors or their estates.
13. The Debtors shall have the right to use and sell all FF&E owned by the Debtors (the
“Owned FF&E”). The Debtors may advertise the sale of the Owned FF&E in a manner
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Case 25-10068-CTG Doc 385-1 Filed 02/12/25 Page 29 of 30
consistent with these guidelines. The purchasers of any Owned FF&E sold during the sale
shall be permitted to remove the Owned FF&E either through the back or alternative
shipping areas at any time, or through other areas after applicable business hours, provided,
however that the foregoing shall not apply to de minimis FF&E sales made whereby the
item can be carried out of the Closing Store in a shopping bag. For the avoidance of doubt,
as of the Termination Date, the Debtors may abandon, in place and without further
responsibility, any FF&E.
14. At the conclusion of the Store Closing Sales at each Closing Store, pending assumption or
rejection of applicable leases, the landlords of the Closing Stores shall have reasonable
access to the Closing Stores’ premises as set forth in the applicable leases. The Debtors
and their agents and representatives shall continue to have access to the Closing Stores.
15. The rights of landlords against the Debtors for any damages to a Closing Store shall be
reserved in accordance with the provisions of the applicable lease; provided that to the
extent certain leases of Closing Stores require written confirmation of receipt of a key to
effectuate surrender, this requirement is waived.
16. If and to the extent that the landlord of any Closing Store affected hereby contends that the
Debtors are in breach of or default under these Store Closing Procedures, such landlord
shall email or deliver written notice by overnight delivery on the Debtors as follows:
JOANN Inc.
5555 Darrow Road
Hudson, Ohio 44236
Attention: Legal Department
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Case 25-10068-CTG Doc 385-1 Filed 02/12/25 Page 30 of 30
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