Liquidation auction set for Joan Fabrics

By Staff -- Home Textiles Today, 5/31/2007 12:31:00 PM

Wilmington,Del.– The assets of bankrupt former fabric powerhouse Joan Fabrics are scheduled to be sold at auction on June 26, according to an order filed by the U.S. Bankruptcy Court here.

Rick Mikels, an attorney for Joan, said, “We’ve had a number of interested buyers.” But he declined to name any potential bidders for the company’s assets, which include real estate, inventory, receivables, intellectual property, equipment and more.

Although Joan Fabrics and its Mastercraft business unit have vacated their space in High Point’s Market Square Textile Tower, the Circa 1801 unit is still operating and will be exhibiting in its 407 W. High Avenue showroom during next week’s Showtime fabric fair.

Joan has asked the bankruptcy court to allow incentive pay for Circa 1801 president John Lenox, vp Margaret Coffin and other executives to help ensure the unit remains viable and maintains its value during the sale.

Former Joan Fabrics ceo Elkin McCallum is among several former executives and directors of former velvet supplier Collins & Aikman being sued by that company, which filed for Chapter 11 bankruptcy protection in 2005. C&A has not been able to successfully reorganize and is expected to cease operations soon.