Joann Inc. Files for Bankruptcy Again, Seeks Sale of Assets to Gordon Brothers

Jan 15, 2025, 03:00 PM

Crafts and fabrics retailer Joann Inc. has filed for Chapter 11 bankruptcy protection for the second time in less than a year, seeking court approval in Delaware to initiate a sale process. The company, which operates over 800 stores across 49 states, aims to sell 'substantially all of its assets' with Gordon Brothers Retail Partners serving as the stalking horse bidder. Joann's stores and website will remain open during the bankruptcy process, and employees will continue to receive pay and benefits. The retailer cited 'unexpected' and 'acute' inventory issues, as well as a challenging retail environment, as reasons for the filing. Joann previously filed for bankruptcy in March 2024, emerging as a private company in April after creditors agreed to cancel $505 million of its debt. The company's current debt stands at $615.7 million, with an additional $133 million in trade debt.