Joann Inc. has filed for Chapter 11 bankruptcy for the second time this year, citing economic challenges and inventory issues.
They filed their petition in Delaware, listing assets and liabilities between $1 billion and $10 billion, with over $700 million in debt. Joann’s got a hefty $615.7 million in funded debt and $133 million in unsecured debt, plus $26 million in monthly lease obligations.
Their biggest creditors include Low Tech Toy Club and SVP Sewing Brands, among others. Joann operates around 800 stores across 49 states and employs about 19,000 people. They blame their troubles on a stagnant retail economy, inflation, and high interest rates.
The company, which started as the Cleveland Fabrics Shop in 1943, is looking for a way out. They’ve got a stalking-horse bidder lined up to buy their assets from Gordon Brothers Retail Properties.
Joann had previously filed for bankruptcy in March 2024 to tackle its $1 billion debt, emerging in April with a restructured plan. They ended 2024 with about $2 billion in sales, but it seems the challenges just keep coming.
