Craft retailer Joann Inc filed for Chapter 11 protection in Delaware on Wednesday, saying that inventory shortages had forced it to back into bankruptcy for the second time in less than a year. Joann said it intends to seek a buyer for its business, which has the "potential" to survive under the right ownership. If no buyer emerges, Joann would allow Gordon Brothers Retail Partners LLC to liquidate all of its assets, including store inventory valued at $538.3 million, according to documents filed in Wilmington, Delaware, bankruptcy court.
Total Retail's Take: It's find a buyer or bust for Joann. The craft retailer believed its previous debt reduction deal as part of the 2024 bankruptcy filing would allow it to resume business as usual, however, high inflation, increased competition, and supply chain disruption caused “irreparable harm” to its post-bankruptcy business plan, according to its court filings. This combination of factors has left Joann in a position where profitably moving forward with its store-based business model was no longer feasible. Perhaps a last-minute sale will be in the cards for Joann like it was for Big Lots, but as of today we're looking at one of our first retail casualties of 2025.