Joan Fabrics Files for Chapter 11
April 13, 2007
TYNGSBORO, Massachusetts – After its former president and CEO stepped down last week, Joan Fabrics Corporation and its wholly-owned subsidiary, Madison Avenue Design, has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
The companies filed in Delaware and intend to utilize the Chapter 11 process to reorganize their financial operations. Joan Fabrics and Madison Avenue designs will be represented by a team of attorneys headed by Richard E. Mikels. The companies have entered into debtor in possession financing agreements of more than $10 million with their lenders, led by Bank of America.
Throughout the filing and reorganization process, both Joan Fabrics and Madison Avenue Design will remain fully operational under the Carl Marks Advisory Group, and they will continue to serve their 700 or so clients in the hospitality, residential and contract sectors in Mexican, Canadian and U.S. markets.
The companies filed in Delaware and intend to utilize the Chapter 11 process to reorganize their financial operations. Joan Fabrics and Madison Avenue designs will be represented by a team of attorneys headed by Richard E. Mikels. The companies have entered into debtor in possession financing agreements of more than $10 million with their lenders, led by Bank of America.
Throughout the filing and reorganization process, both Joan Fabrics and Madison Avenue Design will remain fully operational under the Carl Marks Advisory Group, and they will continue to serve their 700 or so clients in the hospitality, residential and contract sectors in Mexican, Canadian and U.S. markets.
