New York City — Fabrics and crafts retailer JOANN, which operates roughly 800 stores in 49 states, has filed for Chapter 11 bankruptcy protection, marking its second filing within a year. JOANN first filed for bankruptcy in March 2024.
According to a statement issued by the company, JOANN has faced “significant and lasting challenges in the retail environment,” as well as “constrained inventory levels.”
The retailer’s current debt totals $615 million, according to CNN.
The company is now planning to sell all its assets, with Gordon Brothers Retail Partners — which recently acquired many of Big Lots’ assets — named as the stalking horse bidder. JOANN’s stores and website will continue to operate as usual throughout the bankruptcy process.
SOURCE: www.ShoppingCenterBusiness.com