Jan. 16, 2025

Crafts and fabric retailer JoAnn Inc. has filed for bankruptcy for the second time in less than a year.

The company is working to sell the business, with liquidator Golden Brothers Retail Partners serving as the “stalking horse” bidder if approved by the U.S. Bankruptcy Court for the District of Delaware. JoAnn intends to seek higher bids through an auction.

In the meantime, the company’s 800-plus stores in 49 states and online sales remain open. That includes the location in Sioux Falls, which is at 2725 W. 41st St. in the Plaza 41 retail center, and stores in Brookings and Rapid City.

The Ohio-based retailer also filed for Chapter 11 bankruptcy in March 2024, emerging from the process six weeks later.

“Since becoming a private company in April, the board and management team have continued to execute on top- and bottom-line initiatives to manage costs and drive value,” said Michael Prendergast, interim CEO. “However, the last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step.

“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. We hope that this process enables us to find a path that would allow Joann to continue operating as a going concern.”