Dive Brief:
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Joann Chief Financial Officer Scott Sekella, who oversaw the company’s recent restructuring and bankruptcy, has left. Jeff Dwyer, managing director at Alvarez & Marsal, will be interim CFO until a replacement is found.
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The crafts retailer also announced a slate of new executives. John Stalcup was promoted to executive vice president, chief digital officer, while Roger Hawkins was promoted to senior vice president, store operations.
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Peter Meyer, most recently Arhaus senior vice president of merchandise planning and allocation, and before that a Joann executive in business development and strategy, returns to Joann as VP of merchandise planning and allocation. Finally, former Michaels general merchandise manager Eileen Miller will oversee the craft, kids, storage and frames businesses as vice president and GMM.
Dive Insight:
Joann struggled for years before this year’s bankruptcy, emerging in late April as a private company after reducing its $1.1 billion in long-term debt by about half. All the while, since filing for bankruptcy in March, the retailer has managed to keep its more than 800 stores open.
Last year, Sekella had envisioned a return to growth via efficiencies, including cutting labor costs, but the retailer ended up restructuring under Chapter 11. Per federal regulations, a $400,000 retention bonus he was awarded the day before the bankruptcy filing must be repaid because he left his position within six months.
Just last month, as Joann announced a new interim CEO — another Alvarez & Marsal managing director, Michael Prendergast — the company had affirmed that Sekella would be staying on as CFO. Until Prendergast’s appointment Sekella had spent about a year as a co-lead of Joann’s office of CEO, including through the Chapter 11 proceedings, in addition to his CFO duties.
Sekella is pursuing other opportunities, and his exit is not related to disagreements with Joann over financial statements or accounting policies or practices, the company said.
“We are very excited to share these promotions and additions to the Joann management team, and look forward to working with them to drive towards future successes,” Prendergast said in a statement Monday, adding, “Last but not least I’d like to thank Scott for all of his hard work and efforts.”
