Joann Files for Second Bankruptcy in Less Than a Year, Seeks Buyer

The crafts retailer cites declining sales, inventory challenges, and over $600 million in debt as it looks to sell its assets through a court-supervised process.

Joann has filed for Chapter 11 bankruptcy for the second time in under a year, with $615.7 million in debt and $8.4 million in cash on hand.
The company is seeking a buyer for its assets and has named Gordon Brothers Retail Partners as the stalking horse bidder to set the minimum auction price.
Joann's 800 stores and online operations will remain open during the bankruptcy process, with employees continuing to receive pay and benefits.
The retailer has struggled with declining sales, competition from rivals like Michaels and Hobby Lobby, and inventory shortages caused by supply chain disruptions.
Experts warn that if no higher bidders emerge, Gordon Brothers may liquidate the company's assets, potentially leading to store closures and layoffs.