For the second time in less than a year, Joann Inc. has filed for Chapter 11 bankruptcy. This time, it’s also looking to sell itself to maximize its business value.
Interim CEO Michael Prendergast said the Ohio-based crafts retailer has faced tough retail conditions. Struggling sales and limited inventory left the company with no choice but to file again.
The first bankruptcy filing came in March 2024 after 81 years in business. Despite that, Joann kept all 800+ locations across 49 states open and went private.
"After carefully reviewing all available strategic paths, we have determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business," Prendergast said. He expressed hope that the process would help Joann continue operating.
Joann is now seeking court approval to sell most of its assets to Gordon Brothers Retail Partners LLC. Gordon Brothers, acting as the "stalking horse" bidder, has set the initial offer for the assets.
According to Joann, Gordon Brothers plans to liquidate the company. This would include going out-of-business sales at all store locations.
However, the company is still accepting other bids. Interested parties have reached out about possibly continuing to operate the stores and online businesses.
If qualified bids are submitted, Joann will hold auctions. Gordon Brothers’ bid will serve as the minimum starting point for these auctions.
For now, Joann plans to keep all stores open. Its online store will operate as usual, and employees will continue to receive pay and benefits.