Nine months after emerging from bankruptcy, retailer Joann Inc. has commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware to facilitate a sale process to maximize the value of its business. The Hudson, OH-based company is seeking court approval to commence a process for the sale of substantially all its assets, with Gordon Brothers Retail Partners, LLC serving as the “stalking horse” bidder.

“Since becoming a private company in April, the board and management team have continued to execute on top- and bottom-line initiatives to manage costs and drive value,” said Michael Prendergast, interim CEO of Joann. “However, the past several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step.”

If other qualified bids are submitted during the court-supervised sale processes, the company plans to conduct an auction or auctions, with the stalking horse bid setting the floor.   

Kirkland & Ellis is serving as legal counsel to Joann, with Centerview Partners LLC serving as financial advisor and Alvarez & Marsal North America, LLC serving as restructuring advisor. The company operates more than 800 stores across 49 states. 

San Diego-based fast casual chain Rubio’s Coastal Grill has filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The company is taking this action, which followed the closure of 48 locations across California earlier this week, to facilitate the sale of the business. Rubio’s has 86 locations in California, Arizona and Nevada that will continue normal operations.

Rubio’s cited diminishing in-store traffic attributable to work-from-home practices remaining in place, along with rising food and utility costs that, combined with significant increases to the minimum wage in California, put pressure on a number of its locations.

“Despite the company’s best efforts to right-size the company, the continued challenging economic conditions have negatively impacted its ability to meet the demands of its debt burden,” said Nicholas Rubin, chief restructuring officer of Rubio’s Coastal Grill. “The company believes the best path forward for Rubio’s is through a court-supervised sale process that will position the brand for long-term success to grow and flourish.”

The company will enter into a stalking horse purchase agreement to sell its business as a going concern to an entity formed and controlled by its existing lender. Hilco Corporate Finance is being retained to conduct a sale process under the bid.

Red Lobster Management LLC said late Sunday evening that it had filed for Chapter 11 protection in the United States Bankruptcy Court for the Middle District of Florida. The move was widely expected; CNBC reported in April that the seafood restaurant operator was seeking a buyer to avoid a bankruptcy filing.

Further store closures and a sale of substantially all its assets are part of the plan outlined in Sunday’s bankruptcy filing. Red Lobster said it had entered into a stalking horse purchase agreement pursuant to which the company will sell its business to an entity formed and controlled by its existing term lenders.

Meanwhile, the company has received a $100-million debtor-in-possession commitment from its lenders and plans to keep all locations open while the bankruptcy case runs its course.

“This restructuring is the best path forward for Red Lobster,” said Jonathan Tibus, a restructuring expert who was recently appointed as CEO. “It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth. The support we’ve received from our lenders and vendors will help ensure that we can complete the sale process quickly and efficiently while remaining focused on our employees and guests.”

CNBC reported that in a court filing, Tibus blamed a “difficult macroeconomic environment, a bloated and underperforming restaurant footprint, failed or ill-advised strategic initiatives, and increased competition within the restaurant industry” for the chain’s need to seek Chapter 11 protection.

The chain was divested by Darden Restaurants in 2014 and sold to private equity firm Golden Gate Capital, which subsequently sold its ownership stake to an investor group.

Express, Inc. said Monday it had filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware and will close approximately 95 Express stores and all 12 UpWest locations. The Columbus, OH-based retailer has received a non-binding letter of intent from a consortium led by WHP Global to acquire a substantial majority of its stores and operations.

Subject to court approval, Express has received a commitment for $35 million in new financing from certain of its existing lenders. Last week it received $49 million in cash from the Internal Revenue Service related to the CARES Act.

The bankruptcy filing had been expected, with news surfacing earlier this month that the 44-year-old retailer was exploring Chapter 11 protection. “With the company struggling to gain traction with consumers, it has been obvious for quite some time that bankruptcy was the inevitable destination for Express,” Neil Saunders, managing director of GlobalData, was quoted by CNN as saying.

WHP Global’s partners in the consortium include a wholly owned indirect subsidiary of Simon Property Group, L. P. and Brookfield Properties. New York-based WHP already owns a 7.4% stake in Express.

“WHP has been a strong partner to the company since 2023, and the proposed transaction will provide us additional financial resources, better position the business for profitable growth and maximize value for our stakeholders,” said Express CEO Stewart Glendinning.

The company didn’t specify which Express locations would close down. Currently it operates about 530 stores under the Express, Bonobos and UpWest brands.

Kirkland & Ellis LLP is serving as legal counsel to Express, Moelis & Company LLC is serving as investment banker, and M3 Partners, LP is serving as financial advisor. Information about the company’s court filings is available here.

Pictured: Express storefront in Manhattan’s Flatiron District, circa 2013.

Atlanta-based hamburger chain Krystal has filed for Chapter 11 Bankruptcy. The company reported assets between $10 million and $50 million, and liabilities between $50 million and $100 million.

The fast-food chain operates 182 restaurants across nine states, Georgia, Tennessee, Alabama, Florida, Kentucky, Mississippi, North Carolina, South Carolina and Arkansas. In addition, franchisees currently own and operate 116 Krystal restaurants.

In its filing, the company cited a number of contributing factors to its bankruptcy that included increasing competition, shifting customer tastes and the rise of online delivery platforms. Also cited was the tight labor market, which has made it hard for the chain to find employees.

The company, which is now headquartered in the Atlanta suburb of Dunwoody, was founded in Chattanooga in 1932, and is the oldest quick-service restaurant in the South and the second oldest in the United States. K-Square Restaurant Partners LP acquired The Krystal Co. in 2012.

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Buildings at 152 Nassau St. in Downtown Atlanta, recently razed to make way for a Margaritaville Hotel.

A developer has taken a large step closer to letting Atlanta visitors waste away in Margaritaville for the first time.

Landmark Builders filed permits Monday with the city of Atlanta to begin vertical construction on its planned 21-story, 321K SF hotel and timeshare tower licensed by singer/songwriter Jimmy Buffett.

Charlotte-based Landmark plans to construct the hotel at 155 Centennial Olympic Park Drive, across from Centennial Olympic Park in Downtown Atlanta. Company officials did not return calls seeking comment, but a Landmark spokesperson previously told WhatNowAtlanta that the hotel should deliver in the middle of 2021.

Plans call for restaurant and retail space on the bottom floors and a pool and fitness center on the 19th floor. The hotel — slated to be operated by Wyndham Hotels & Resorts — has long been in the works.

The developers proposed the project in 2014 and sought to tear down two older buildings on the site, one of which was the site where country music singer Fiddlin’ John Carson recorded two of his hits in the 1920s, The Atlanta Journal-Constitution previously reported.

Local activists and preservationists fought against the move, but the two buildings at 141 Walton St. and 152 Nassau St. were ultimately demolished earlier this year.