(Gray News) – Joann Fabrics and Crafts has filed for bankruptcy for a second time within a year and announced that it’s seeking a sale.
According to CNN, the 82-year-old retailer announced in a statement Wednesday that “sluggish sales and inventory issues” forced the company to file for Chapter 11 again.
Joann first filed for bankruptcy in March 2024 as consumers cut back on spending and some pandemic-era hobbies, like crafting.
The company re-opened a month later as a private business, keeping its stores open, CNN reported.
Joann Fabrics is the latest to join a growing list of struggling brick-and-mortar stores that are unable to stay afloat in the current economic environment.
Joann is seeking to sell most of its assets.
Gordon Brothers retail partners, which recently bought much of Big Lots, has already emerged as a potential buyer and made an undisclosed initial bid.
CNN points out in a report that the post-pandemic shopping boom has ended, and many businesses are heading on a “path to bankruptcy as normalcy returns to the retail industry.”
Joann’s stores and websites are expected to operate normally during the bankruptcy process.
Copyright 2025 Gray Local Media, Inc. All rights reserved. CNN contributed to this report.