Joann Inc., the well-known U.S. craft retailer, has filed for Chapter 11 bankruptcy protection for the second time in just over a year.
The company, which operates more than 800 stores across the country and a popular online platform, cited several financial challenges, including inventory shortages, high inflation, and increased competition, as the driving factors behind its decision.
Joann, a staple in the crafting and fabric industries, initially filed for bankruptcy in late 2024.
However, the latest filing marks an even more difficult moment for the company, which is now struggling to maintain its operations despite a series of attempts to turn around its financial position.
The company’s latest move is aimed at finding a buyer to continue operations. Should that not prove successful, Joann may be forced to liquidate its assets through its financial advisors, Gordon Brothers Retail Partners LLC, which has been appointed to assist in this process.
The retailer has faced mounting pressure due to supply chain issues and the overall economic environment, which has led to reduced consumer spending.
Despite the bankruptcy proceedings, Joann plans to keep its stores and e-commerce platform open, continuing to serve customers during the transition.
It is also committed to supporting its employees, ensuring no immediate layoffs. However, some closures are expected, with the company confirming that several stores will be shutting down as part of the restructuring process.
Joann’s situation has drawn attention from industry analysts, who note that its struggles reflect the larger pressures facing many retailers in a post-pandemic economy.
With a surge in online shopping, as well as challenges from discount chains and other competitors, Joann’s financial woes are part of a broader retail trend affecting established players in the crafting and home goods sector.
For now, the future of Joann remains uncertain as the company navigates its Chapter 11 proceedings, hoping to find a solution that will secure its long-term survival. Stay tuned for further updates on Joann’s bankruptcy case as it continues to unfold.
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