Joann Crafts Retailer Files for Bankruptcy Again in Less Than a Year

Columbus: So, here we go again. Joann Inc., the crafts retailer, has filed for Chapter 11 bankruptcy protection for the second time in under a year. They’re also looking to sell themselves to another company to try and get the best value out of this situation.

The interim CEO, Michael Prendergast, mentioned that the retail scene has been pretty tough lately. Sales have been down, and inventory is tight, which pushed them to file for bankruptcy again in Delaware.

Last March, they filed for Chapter 11 for the first time after being in business for 81 years. Back then, they didn’t close any of their 800-plus stores across 49 states.

Prendergast said they’ve looked at all their options and believe that going through a court-supervised sale is the best way to keep the business alive. They’re hoping this will help Joann keep its doors open.

Now, they’re trying to get court approval to sell most of their assets to Gordon Brothers Retail Partners LLC. Gordon would be the first bidder, which is a common practice in these situations.

However, Gordon Brothers plans to liquidate the company and hold going-out-of-business sales at all locations. Joann is still looking for other bids and has heard from some interested parties who want to keep the stores and online business running.

If they get other qualified bids, they’ll hold an auction, with Gordon’s bid setting the starting point. For now, all stores will stay open, and the online shop will keep running as usual. Employees will continue to get paid and receive their benefits.