JOANN Inc., the leading U.S. specialty retailer of fabrics and craft supplies founded in 1943, filed its second Chapter 11 petition on January 15, 2025 in the District of Delaware (Case No. 25-10068) before Judge Craig T. Goldblatt—just eight months after emerging from a March 2024 prepackaged reorganization that reduced funded debt from $1.06 billion to $555.5 million. Post-emergence supply chain disruptions—suppliers refused to ship or demanded cash-on-delivery terms—left inventory levels critically short, accumulating approximately $133 million in merchandise trade debt and rendering the company's approximately 800 stores in 49 states unsustainable. The second case proceeded as a freefall bankruptcy with no DIP financing; the debtors instead operated on cash collateral. An auction on February 21–22, 2025 resulted in GA JOANN Retail Partnership, LLC—a credit bid consortium of prepetition term loan lenders and Great American Group—acquiring substantially all assets, while Gordon Brothers served as stalking horse bidder. All approximately 800 stores closed by May 30, 2025, eliminating roughly 19,000 jobs and ending 82 years of retail operations. Michaels Stores acquired JOANN's intellectual property and private-label brands; Singer Sourcing Limited LLC separately purchased certain IP for $800,000. The Second Amended Joint Chapter 11 Liquidating Plan was confirmed on July 10, 2025 and became effective July 16, 2025. The plan established a GUC Trust (Trustee: Steven Balasiano, MHR Advisory Group) for general unsecured creditors and appointed Ann Aber as Plan Administrator. Secured and priority claims receive full payment; term loan lenders receive pro rata Wind-Down Proceeds; general unsecured creditors receive GUC Trust Interests with variable recovery; equity interests were cancelled with zero recovery.
