Joann Shuffles C-Suite Following Emergence From Bankruptcy

Following a Chapter 11 bankruptcy filing in March and legal approval of its reorganization plan and emergence from bankruptcy as a private company in April and May, respectively, arts and crafts retailer Joann (Hudson, Ohio) is shuffling its c-suite. CFO Scott Sekella will be leaving the retailer, the company announced Wednesday, while Stan Rosenzweig will take up the position of Executive Chairman of the Board.

After the bankruptcy filing, Sekella received a $400,000 retention bonus. Per federal law, Sekella must repay the bonus as his resignation was voluntary and within six months of the filing. Jeff Dwyer will take on the position of interim CFO while the retailer searches for a permanent replacement. Dwyer previously worked at Alvarez & Marsal (New York) for nearly two decades. Current Joann CEO Michael Prendergast worked with Dwyer at Alvarez & Marsal for six years before Prendergast moved to Joann.

“Scott’s departure was not related to any disagreements with Joann regarding the company’s financial statements or accounting policies or practices,” the announcement of Sekella’s departure said.

Meanwhile, Joann announced Friday that Stan Rosenzweig will be brought on as Executive Chairman of the Board following the resignation of Interim Chairman, Darrell Horn, effective Aug. 5. Rosenzweig was most recently Executive Chairman of the Board at SVP Worldwide (Nashville, Tenn.), the parent company of Singer, Pfaff, Husqvarna and Viking Sewing Machines.

In early June, additional members joined Joann’s board – Mary Campbell, Joe Hartsig, Michelle Israel and Bill Wall.