However, after emerging from bankruptcy, Joann struggled to cope with inflation, rising interest rates, and declining consumer spending, which further pressured its profit margins. Additionally, supply chain issues caused key vendors to halt production of items Joann relied on, leading to inventory shortages. By last summer, in-stock levels had dropped below 90%, the lowest in over a decade, affecting customer satisfaction and sales.
Joann intends to continue working with Centerview Partners on a marketing process for its assets and secure enough liquidity to continue operating during the bankruptcy. A first-day hearing is scheduled for Thursday at 3 p.m. EST.
The company is represented by Kirkland & Ellis LLP and Cole Schotz PC in the case, titled In re: Joann Inc., case number 1:25-bk-10068, in the U.S. Bankruptcy Court for the District of Delaware.
