(Bloomberg) — Crafts and fabric retailer Joann Inc. has filed bankruptcy for the second time in less than a year, as its sales continue to decline.
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The company listed assets and liabilities of between $1 billion and $10 billion on a Chapter 11 petition filed Wednesday in a Delaware court.
The firm is seeking court approval to commence a substantial sale process for all of its assets, it said in a statement. Gordon Brothers Retail Partners would serve as the stalking horse bidder of the proposed sale, which is subject to higher and better offers. Joann’s stores will remain open meanwhile, the statement added.
Joann’s swift return to court follows a string of retail bankruptcies in recent months including fellow repeat filer Party City Holdco Inc., as well as chains Big Lots Inc. and The Container Store Group Inc. Numerous retailers have struggled the past several years due to inflation and interest rates that were for a time the highest in decades.
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Hudson, Ohio-based Joann’s filed Chapter 11 in March 2024 to quickly execute a lender-backed debt restructuring. The firm exited Chapter 11 six weeks later with more than 800 stores and its debt nearly halved to about $555 million, according to court documents. Joann said at the time that the bankruptcy plan enabled the chain “to be in its best financial position in recent history.”
But in November, Bloomberg News reported that Joann had been asking vendors for rebates and retroactive discounts amid a sales slump. A spokesperson said at the time that the retailer was seeking additional support from its vendors. Bloomberg separately reported in January that Joann was working with advisers to help shore up its balance sheet and ease liquidity pressures.
–With assistance from Janine Phakdeetham.
(Updates with the company’s statement in the third paragraph.)
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