Hudson-based Joann Inc. has filed for Chapter 11 bankruptcy for the second time in less than a year.
The company said the voluntary filing was to facilitate a sale process to maximize its value.
According to the company, all employees will continue to receive pay and benefits.
“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 Chief Executive Officer of JOANN. “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.”
Last March, Joann filed for Chapter 11 bankruptcy.
RELATED: Joann Inc. files for bankruptcy
Joann Inc. is one of the largest arts and crafts chains in the country, with around 800 stores and more than 18,000 employees.
