Joan Fabrics Files For Chapter 11
During the proceedings, both businesses will continue to operate and serve their more than 700 customers, under the management of Carl Marks Advisory Group LLC, a New York City-based business advisory and interim management firm. The companies’ 700 employees will not be affected.
The companies have entered into debtor-in-possession financing agreements with their lenders, and have received debtor-in-possession financing of more than $10 million.
“This will allow us to meet the companies’ cash needs and give us opportunities to explore strategic options to determine the company’s future,” said Richard Heller, COO. “We are already in contact with a number of firms who have expressed interest in acquiring some or all of our operating units. We believe that such a sale will provide the most advantageous result for our employees, customers and creditors.”
April 17, 2007