Joann Files for Second Bankruptcy in a Year, Plans to Liquidate Assets
Joann Inc., the well-known fabric and craft retailer, has once again filed for Chapter 11 bankruptcy, marking its second such filing in less than a year amid ongoing financial difficulties. The company, which first sought bankruptcy protection in March 2024, is now looking to sell all its assets as it grapples with increasing financial pressures.
Challenges like dwindling foot traffic, heightened competition from online retailers, and escalating operational costs have continued to hinder the business, ultimately leading to this second bankruptcy filing.
This time around, Joann intends to conduct a full sale of its assets, which includes:
“This was an incredibly tough decision, but it is essential to confront our financial realities and seek opportunities for the future of the Joann brand,” stated CEO Wade Miquelon.
This announcement brings uncertainty for Joann’s employees, many of whom may face job losses, as well as for customers who have depended on the retailer for their crafting needs. The company’s dedicated customer base has voiced disappointment at the thought of losing a beloved destination for creative projects.
For suppliers and partners, the planned sale introduces additional uncertainty regarding existing contracts and payments.
Joann’s struggles reflect the wider issues that traditional brick-and-mortar retailers are facing. With e-commerce platforms taking the lead in the market, established retailers like Joann find it hard to keep up, especially in niche areas like crafting and home décor.
The bankruptcy court will manage the process of selling assets, and potential buyers are anticipated to come forward in the next few months. Stakeholders are optimistic that a new owner could breathe new life into the brand or find creative ways to utilize its assets.
