Joann Inc., a major crafts retailer, has filed for bankruptcy protection for the second time in less than a year. The Ohio-based company had previously filed for Chapter 11 in March 2024 after 81 years in business.
According to Interim CEO Michael Prendergast, Joann is seeking to “maximize the value of its business” through a court-supervised sale process. The company has announced that it will auction off substantially all of its assets to Gordon Brothers Retail Partners LLC, with Gordon serving as the “stalking horse” bidder.
Gordon Brothers intends to pursue a liquidation of the company and conduct going out-of-business sales at all store locations. However, Joann is still actively soliciting alternate bids from parties interested in continuing to operate the stores and online businesses on an ongoing basis.
The company plans to keep all stores open and its online store will continue to operate as normal during the sale process. Employees will also receive pay and benefits until a new ownership structure is established.
Source: https://www.foxbusiness.com/lifestyle/major-crafts-retailer-files-bankruptcy