In 2025, the crafting world was rocked by the JOANN lawsuit, a civil action filed by six vendors against seven executives, including former Chief Merchandising Officer Robert Will, alleging fraudulent misrepresentation. As JOANN Fabrics and Crafts navigates its second Chapter 11 bankruptcy in a year, a bombshell revelation has emerged: Robert Will, a key defendant, appears to have jumped ship to become CEO of SVP Worldwide, a major JOANN creditor and the world’s largest sewing machine company. This blog dives into the lawsuit’s allegations, the surprising executive shuffle, and what it means for vendors, creditors, and craft enthusiasts. Read on to uncover the twists, connect the dots, and learn how to protect your interests if you’re affected.
What Is the JOANN Lawsuit About?
In May 2025, six suppliers filed a lawsuit in Summit County Court of Common Pleas, Ohio, against seven JOANN executives, including interim CEO Michael Prendergast and Robert Will, alleging they misrepresented the company’s financial health after its 2024 bankruptcy. The vendors claim they shipped goods on credit, relying on “rosy” projections of $152 million in 2025 EBITDA and $201 million in 2026, only to face losses exceeding $40 million when JOANN filed for bankruptcy again in January 2025. The case, now in federal court, cites fraudulent misrepresentation, negligent misrepresentation, and common law fraud, with plaintiffs seeking over $78 million in damages.
Key Allegation: Executives misled vendors about JOANN’s stability, causing significant financial losses when the company collapsed under $615 million in debt.
The lawsuit has sparked debate about corporate accountability, especially as JOANN’s stores close and its assets are liquidated, leaving unsecured creditors like the plaintiffs with little hope of recovery.
The Shocking Twist: Robert Will’s Move to SVP Worldwide
The most jaw-dropping detail, uncovered by Sewing Report Live host Jen, is Robert Will’s apparent transition from JOANN’s Chief Merchandising Officer to CEO of SVP Worldwide, a major JOANN creditor owed significant sums in the bankruptcy. Here’s how the dots connect:
- Court Summons Revelation: The lawsuit’s summons lists Will’s contact information as “care of SVP Worldwide” in Nashville, Tennessee, not a personal address. SVP Worldwide, which owns Singer, Husqvarna Viking, and Pfaff, supplied sewing machines to JOANN’s stores and operated Husqvarna Viking sewing centers within them.
- LinkedIn Confirmation: A LinkedIn profile, believed to be Will’s, shows he left JOANN in February 2025, after the second bankruptcy filing, and joined SVP Worldwide as CEO the same month. This timeline aligns with JOANN’s bankruptcy and SVP’s creditor status.
- SVP’s Silence: Despite Will’s high-profile role, SVP Worldwide has issued no press release or updated its leadership page, which lacks current executive details. The company’s website and social media haven’t been updated since October 2023, raising questions about transparency.
Why It Matters: Will’s move to a major creditor while named in a lawsuit accusing him of misleading vendors raises ethical and legal questions, including potential conflicts of interest.
Connecting the Dots: JOANN and SVP Worldwide’s Tangled Ties
The relationship between JOANN and SVP Worldwide runs deep, complicating the lawsuit’s narrative:
- Vendor-Creditor Dynamic: SVP Worldwide is among JOANN’s top 30 creditors in the 2025 bankruptcy, owed significant sums for sewing machines and services. Will’s alleged close relationships with vendors, including SVP, are central to the lawsuit’s claims.
- Executive Shuffles: In August 2024, Stan Rosenzweig, former SVP Worldwide Executive Chairman, joined JOANN as Executive Chairman of the Board, only to leave months later. Meanwhile, Will’s move to SVP Worldwide in February 2025 suggests a revolving door of leadership between the two companies.
- Private Equity Ownership: SVP Worldwide, owned by Platinum Equity since 2021, has seen three CEOs in five years, including Carl-Martin Lindahl (until 2022) and Jason Forcier (until January 2025). Will’s unpublicized appointment as CEO adds to the opacity.
These connections fuel speculation about whether Will’s move was strategic, especially as SVP Worldwide remains silent on its leadership changes.
Why Is SVP Worldwide Staying Quiet?
SVP Worldwide’s lack of transparency is striking. Unlike most corporations, which announce C-suite hires, SVP has scrubbed its leadership page and issued no press releases about Will. Possible reasons include:
- Avoiding Scrutiny: Publicizing Will’s appointment could draw attention to his role in the JOANN lawsuit and bankruptcy, damaging SVP’s reputation.
- Private Equity Influence: As a Platinum Equity portfolio company, SVP may prioritize discretion to protect financial interests, especially as a creditor in JOANN’s bankruptcy.
- Legal Caution: With Will named in a lawsuit, SVP may be avoiding statements that could complicate legal proceedings.
This silence contrasts with JOANN’s public bankruptcy filings, which detail SVP’s creditor status and list Forcier as CEO in January 2025, supporting the timeline of Will’s transition.
What Does This Mean for Vendors and Creditors?
The JOANN lawsuit and Will’s move to SVP Worldwide have significant implications:
- Vendors’ Losses: Unsecured creditors, like the plaintiff suppliers, are unlikely to recover much in JOANN’s bankruptcy, as assets are liquidated to pay secured creditors first. The lawsuit seeks to hold executives personally liable, but success is uncertain.
- Conflict of Interest Concerns: Will’s role as SVP’s CEO while SVP is a JOANN creditor raises questions about impartiality in bankruptcy proceedings. Creditors may scrutinize whether his actions benefit SVP at others’ expense.
- Craft Industry Impact: JOANN’s store closures and liquidation, coupled with SVP’s leadership changes, could disrupt the sewing and crafting supply chain, affecting consumers and small businesses.
Actionable Advice: If you’re a vendor or creditor affected by JOANN’s bankruptcy, consult a bankruptcy attorney to explore your rights. Filing a proof of claim by the April 4, 2025, bar date is critical.
How to Protect Your Interests
If you’re a vendor, creditor, or craft business owner impacted by JOANN’s collapse, take these steps:
- Contact a Bankruptcy Attorney: An attorney can assess whether you have a claim in the JOANN bankruptcy or grounds to join the lawsuit against executives.
- File a Proof of Claim: Submit claims by April 4, 2025, to be considered in JOANN’s bankruptcy distribution. Visit cases.ra.kroll.com/JOANN2025 for details.
- Monitor SVP Worldwide: Stay informed about SVP’s leadership and financial health, as it’s a key player in the craft industry. Check LinkedIn or industry news for updates.
- Diversify Suppliers: Reduce reliance on single retailers like JOANN by sourcing from competitors like Hobby Lobby or Michaels.
Pro Tip: Document all communications with JOANN or SVP Worldwide, as they may support legal claims.
Six vendors sued seven JOANN executives in May 2025, alleging fraudulent misrepresentation for misleading them about the company’s financial health, causing over $40 million in losses. The case is now in federal court.
Will, a lawsuit defendant, became SVP Worldwide’s CEO in February 2025, shortly after JOANN’s second bankruptcy. SVP, a major JOANN creditor, benefits from his insider knowledge, raising conflict of interest concerns.
The Bigger Picture: Corporate Accountability in Crisis
The JOANN lawsuit and Will’s move to SVP Worldwide highlight the complexities of corporate bankruptcy and executive accountability. As JOANN liquidates and SVP remains silent, vendors and creditors face an uphill battle for justice. This saga underscores the need for transparency and robust legal protections in business dealings.
Related Reading: Explore similar cases in our blogs on the [GM L87 lawsuit](internal-link: artifact_id: 25a30e53-3449-4f28-877a-f1012a37eb02) and [CP4 fuel pump lawsuit](internal-link: artifact_id: ba4029fb-5cf8-4197-9a24-24b5df79a876).
Share Your Thoughts
What do you think about Robert Will’s move to SVP Worldwide? Are the optics as strange as they seem? Share your thoughts in the comments, and subscribe for updates on this unfolding saga. If you’re a vendor or creditor, contact our trusted bankruptcy attorneys for a free consultation to protect your rights.
Sources:
- Sewing Report Live, “The REAL SHOCKER in the JOANN Lawsuit…” (YouTube, 2025)
- Beacon Journal, “Joann suppliers want their day in court against company execs” (June 23, 2025)
- Crain’s Cleveland Business, “Supplier lawsuit blames Joann executives for $40 million in losses” (June 18, 2025)
- Kroll Restructuring Administration, JOANN bankruptcy filings (January 15, 2025)
- Fox Business, “Joann Fabrics and Crafts stores shutting down all locations” (February 25, 2025)
