For the second time in less than a year, Joann Inc. he requested Chapter 11 bankruptcy protection. This time, it is also trying to sell itself to another company in an attempt to “maximize the value of its business.”

Interim CEO Michael Prendergast said Tuesday that the Ohio-based craft retailer had been struggling with a challenging business environment.

This, along with declining sales and restricted inventory levels, forced the company to file for bankruptcy protection again in the United States Bankruptcy Court for the District of Delaware.

In March 2024, the company filed for Chapter 11 for the first time after 81 years in business and subsequently became a private company. At the time, it did not close any of its more than 800 locations in 49 states.

GAPEIS LEASES 700 PARTY CITY LOCATIONS AT AUCTION

“After carefully reviewing all available strategic avenues, 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. “We hope that this process will allow us to find a path that allows it John to continue operating as a going concern”.

A customer walks into a Joann store in El Cerrito, California, USA, on Wednesday, January 8, 2025. (David Paul Morris/Bloomberg via Getty Images/Getty Images)

The company announced that it is seeking court approval to begin a process to sell substantially all of its assets to Gordon Brothers Retail Partners LLC. Gordon would serve as a “stalking horse” bidder, which is a party that agrees to make an initial bid for the bankrupt company’s assets, often before a formal auction process begins.

According to Joann, Gordon Brothers has indicated that it intends to proceed with a liquidation of the company and conduct going-out-of-business sales at all store locations.

A Joann Fabrics store in Wyomissing, Pennsylvania. (Tim Leedy/MediaNews Group/Reading Eagle via Getty Images/Getty Images)

CITY OF THE PARTY WHICH RETURNS THE BUSINESS AFTER 40 YEARS

The company continues to actively solicit alternative offers. He said he has received inquiries from parties potentially interested in continuing to operate the stores and online businesses on an ongoing basis.

If other qualified bids are submitted during the court-supervised sale processes, Joann plans to hold an auction or auctions, with the bid for the stallion leading the way. for auction processes.

GET THE FOX BUSINESS ANYWHERE CLICK HERE

In the meantime, the company plans to keep all of its stores open. Your online store will also continue to operate as normal. Its employees will continue to receive pay and benefits, the company said.