Popular craft chain files for bankruptcy; Will another retailer go out of business?
JoAnn, the fabric and crafts retailer, has filed for Chapter 11 bankruptcy for a second time and is now looking for a buyer.
According to a report from The Washington Post, JoAnn said in court filings Wednesday that it has “faced significant strategic and operational challenges” since April, when it emerged from its previous bankruptcy, six weeks after the initial filing.
The fabric and decorating chain is having a hard time finding enough cash to maintain operations.
Those obstacles, combined with “significant and lasting challenges in the retail environment,” have given the company no choice but to seek bankruptcy protection again, interim chief executive Michael Prendergast said in a news release.
CNN reports Joann is now seeking a sale of substantially all its assets. The retailer will likely sell the business to Gordon Brothers Retail Partners, the same firm that bought the majority of Big Lots, unless it finds a higher bidder. If Gordon Brothers buys the company, the firm plans liquidate the company and conduct going out-of-business sales at all store locations, according to a statement on the JoAnn website.
Earlier this year, JoAnn announced six store closings. There are currently six JoAnn locations in Alabama.