Sun Jan 19 15:00:00 UTC 2025: **Joann Fabrics Files for Second Bankruptcy in Less Than a Year**
COLUMBUS, OH – Joann Fabrics, the 82-year-old crafting supplies retailer, has filed for Chapter 11 bankruptcy protection for the second time in less than a year, citing ongoing financial challenges and inventory constraints. This follows an initial bankruptcy filing in March 2024, where the company secured $132 million in new financing to reduce its $1 billion debt.
Interim CEO Michael Prendergast attributed the renewed bankruptcy to “significant and lasting challenges in the retail environment,” despite ongoing cost-cutting measures. The company intends to sell substantially all of its assets through a court-supervised process.
Gordon Brothers Retail Partners, LLC, which recently acquired a significant portion of Big Lots, has been named the stalking horse bidder, setting a minimum price for any potential offers. Joann is actively soliciting alternative bids and will hold an auction if higher offers are received.
While the bankruptcy proceedings are underway, Joann’s stores and website remain open for business. However, the company has confirmed the closure of at least eight stores across several states, although the exact closure dates vary. Joann maintains that these closures are part of an ongoing store optimization strategy, and they have also opened and remodeled several other locations recently.
Founded in 1943, Joann went private in 2011 and then briefly public in 2021 before returning to private ownership in April following its first bankruptcy filing. The company operates over 800 stores nationwide and offers a wide range of crafting supplies. The outcome of the bankruptcy proceedings and the future of Joann Fabrics remain uncertain.
First Piper 