Craft retailer JOANN Inc (NASDAQ:JOAN) faces delisting from the Nasdaq Stock Market following the initiation of voluntary Chapter 11 bankruptcy proceedings. The Nasdaq Listing Qualifications Department informed JOANN on Monday that it would proceed with the delisting due to the company's non-compliance with the marketplace rules.
The decision is based on the Nasdaq Listing Rules 5101, 5110(b), and IM-5101-1, which govern the suitability for continued listing on the exchange. JOANN, known for its fabric and craft supplies, filed for bankruptcy on March 18, 2024, seeking to reorganize its debt and business operations.
As a result of the delisting, trading of JOANN's common stock will be suspended at the beginning of the business day on March 28, 2024. The company has chosen not to appeal the Nasdaq's determination.
Subsequently, a Form 25-NSE will be filed with the Securities and Exchange Commission, which will formalize the removal of JOANN's common stock from listing and registration on Nasdaq.
This move marks a significant transition for JOANN, indicating the challenges the company faces in the current retail environment. The delisting process underscores the financial difficulties that led to the bankruptcy filing and the company's efforts to navigate through its restructuring plan.
Investors and stakeholders are watching closely as JOANN navigates its Chapter 11 proceedings, which typically allow a company to keep operating while it works on a plan to pay creditors over time. The delisting from Nasdaq is a procedural step that follows the company's bankruptcy announcement and reflects the administrative consequences of such financial distress.
This information is based on a press release statement and provides an overview of the recent developments concerning JOANN Inc's financial and operational status. The company's future steps in the restructuring process will continue to be monitored by interested parties.
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