Once a popular craft retailer JOANN Fabrics requested Chapter 11 bankruptcy earlier this week — marks the second time he has done so in the last 10 months.
The company applied for the first time bankruptcy in March 2024, then arising from bankruptcy as a private company in April.
But on Wednesday, the company announced it was filing for bankruptcy again and will likely sell to Gordon Brothers Retail Partners, which will act as “chasing horse” bidder..
The company said it is also open to alternative offers.
JOANN closed its Holyoke store on Sunday.
The 82-year-old chain said “sharp and unexpected” inventory issues were partly to blame, CNN reported.
According to CNN, the company disclosed in court that these inventory issues led to an “unexpected shutdown and, in some cases, a complete cessation of production,” which prevented customers from wanting to purchase these items.
JOANN is now looking to sell all of its assets.
If Gordon Brothers succeeds in its bid, the JO chain will be liquidated.
“Since going private in April, the board and management team have continued to execute core and core initiatives to manage costs and drive value.” Michael Prendergast, interim chief executive of JOANN, said in a statement.
“However, recent years have presented significant and enduring challenges in the retail environment, which, along with our current financial position and limited inventory levels, forced us to take this step.”