Joann, the 82-year-old fabric and craft retailer, has announced it’s filed for Chapter 11 bankruptcy for the second time within a year, citing financial struggles and inventory issues.
The company first filed for bankruptcy protection in March 2024 in Delaware, after securing around $132 million in new financing. This move was expected to cut its $1 billion debt by about $500 million. On Wednesday, the Ohio-based retailer released a statement about the latest bankruptcy filing and its plan to “facilitate a sale process to maximize the value of its business.”
“Since going private in April, the Board and management have continued to focus on initiatives to manage costs and create value,” said Michael Prendergast, Joann’s interim CEO. “However, the past few years have brought significant and ongoing challenges in the retail space, and with our current financial situation and limited inventory, we had no choice but to take this step.”
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