Joann files for bankruptcy for second time within a year, seeks to sell all assets
https://www.usatoday.com/story/money/2025/01/16/joann-fabrics-bankruptcy-closing/77748650007/
Joann files for bankruptcy for second time within a year, seeks to sell all assets
Joann initially filed for Chapter 11 bankruptcy protection in March 2024 after reducing its $1 billion total debt by about $500 million.
Joann, an 82-year-old fabric and craft retailer, announced it has filed for Chapter 11 bankruptcy for a second time within a year due to financial and inventory issues.
The company originally announced in March 2024 that it had filed for bankruptcy protection in Delaware after securing around $132 million in new financing, which was expected to reduce its $1 billion total debt by about $500 million. On Wednesday, the Ohio-based retailer released a statement about the second bankruptcy filing and its intention to "facilitate a sale process to maximize the value of its business."
"Since becoming a private company in April, the Board and management team have continued to execute on top-and bottom-line initiatives to manage costs and drive value,” Michael Prendergast, interim CEO of Joann, said. “However, the last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step."
Despite announcing the commencement of voluntary Chapter 11 proceedings, Joann said its stores and website are "open in the ordinary course and continue to serve customers."
Here is what to know about Joann's bankruptcy filing and what could come next for the struggling retailer.
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I'm still salty about the way they laid me off just a few days before Chrietmas back in 2015. 
It was a second full time job (restaurant job at night) and I was honest and told them I wanted to work there for the benefits. The big, bold print, pointedly obvious sign on the door listing the benefits is what attracted me as I walked past JoAnnes on my way to my other job. Plus, who doesn’t want a discount on crafting stuff? They said 3 month probationary period before benefits kick in. No problem, I totally understand why companies do that.
After more than 3 months, asked my direct manager for 5 or 6 more hours a week so I could be considered full time and qualify for the health insurance. They strung me along with “once we have hours available, they’re yours!” for a couple more months. When I pushed them on it again, they admitted only managers get full time hours and benefits. Everyone else is purposely scheduled at just a few hours below full time. I quit on the spot. I may have many faults, but I am a damn good employee. They begged me to stay. Pretty sure their hands were tied by greedy corporate policy– but they should have told me the truth upfront, and not continued to hedge and lie when asked about it. I was honest with them from the jump.
Screw You, JoAnnes!
