Joann files for bankruptcy for second time within a year, seeks to sell all assets

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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.