Joan Fabrics Files Chapter 11 Petition
Tyngsboro, Mass.-based Joan Fabrics Corp. a manufacturer of top-quality woven jacquard and velour fabrics for the contract, hospitality and residential sectors in the United States, Canada and Mexico and its Madison Avenue Design subsidiary have filed for Chapter 11 reorganization under the US Bankruptcy Code.
During the proceedings, both businesses will operate under the management of Carl Marks Advisory Group LLC, New York City. The companies 700 employees will not be affected.
The companies 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 companys 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."