Joann Inc. Files for Chapter 11 Bankruptcy Again

Joann Inc. has filed for Chapter 11 bankruptcy for the second time in less than a year, primarily due to a sluggish retail environment and challenges with inventory management that hindered its ability to service debt. Experts criticize the company's decision to keep all locations open after its previous bankruptcy, which they argue is contrary to effective retail strategy. Joann is now at risk of being liquidated, with Gordon Brothers as its stalking horse bidder, potentially leading to widespread store closures and layoffs. Recently, Joann closed six of its 815 stores, but industry analysts warn that without a higher bid in bankruptcy auction, all stores may shut down. The retailer's financial troubles stem from a decline in sales after the pandemic boom, leaving it with significant debt. The craft and fabric chain's situation reflects broader challenges in the retail sector, where many discretionary retailers are struggling amidst changing consumer spending habits.