Joann Inc. Files for Second Bankruptcy in Less Than a Year

HUDSON, Ohio — Joann Inc., one of the nation’s largest arts and crafts retailers, filed for Chapter 11 bankruptcy protection for the second time in less than a year on Tuesday. The Hudson-based company, which operates approximately 800 stores and employs more than 18,000 people, said the filing aims to facilitate a sale process to maximize its value.

In a statement, Interim CEO Michael Prendergast cited “significant and lasting challenges in the retail environment” as a key factor in the decision. “After carefully reviewing all available strategic paths, we have determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business,” Prendergast said.

The company assured employees that they will continue to receive pay and benefits during the bankruptcy process. Joann, which became a private company in April, emphasized that it has been working to manage costs and drive value but faced persistent financial struggles.

This marks the second bankruptcy filing for Joann in less than a year. The retailer previously filed for Chapter 11 protection in March, citing similar challenges in the competitive retail landscape. The company’s financial woes have been exacerbated by constrained inventory levels and shifting consumer trends.

Joann, founded in 1943, has long been a staple for craft enthusiasts, offering fabrics, sewing supplies, and DIY materials. However, the rise of e-commerce and changing consumer habits have put pressure on traditional brick-and-mortar retailers like Joann.

The company’s bankruptcy filing will now proceed under court supervision, with the goal of finding a buyer or restructuring plan that allows Joann to continue operations. “We hope that this process enables us to find a path that would allow JOANN to continue operating as a going concern,” Prendergast added.