Joann has filed for bankruptcy protection for the second time in less than one year and is seeking a buyer, according to CNN and multiple media reports. The crafts retailer entered a structured bankruptcy in March 2024 but emerged as a private company a little over one month later. Joann kept all 800+ brick-and-mortar stores open as part of that deal, which appears to have been a strategic mistake.
The retailer blamed “acute and unexpected” inventory issues, saying in court documents that it faced an “unexpected ramp-down, and, in some cases, the entire cessation of production” of important items that shoppers specifically visit its stores to purchase. This situation harmed sales and put the retailer’s $625 million debt in an “untenable position,” according to court documents quoted by CNN.
Gordon Brothers Retail Partners, which recently enabled a transaction that would allow sales of Big Lots’ assets to other retailers, has reportedly been named the stalking horse bidder for Joann’s assets at an undisclosed purchase price. The retailer could sell itself to another company if it receives a better offer.
In June 2024 Joann sought to broaden its appeal beyond sewing to other crafts categories with its “Jo-And” campaign.
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