US-based crafts retailer JoAnn Fabrics has filed for Chapter 11 bankruptcy for the second time in two years. The company plans to sell its business to Gordon Brothers Retail Partners, which will act as a “stalking horse” bidder. However, JoAnn will accept alternative bids if desired.
JoAnn operates over 800 stores across 49 US states, including locations in Pennsylvania and other states. Founded more than 80 years ago, the company has faced significant challenges in recent years. Despite becoming a private company in April last year, JoAnn’s financial position and inventory levels have led to this decision.
The interim CEO stated that the company is taking this step to maximize value and hopes to find a path to continue operating as a going concern through the sale process.
Source: https://www.pennlive.com/business/2025/01/beloved-crafts-retailer-files-for-bankruptcy-plans-to-sell-company-likely-buyer-would-close-all-of-its-stores.html