(WJET/WFXP) — Craft retailer JOANN filed for Chapter 11 bankruptcy on Wednesday morning, marking the second time the company has done so in a year. Now, the company is looking to sell. The filing comes after JOANN moved to close several of its locations around the nation. Despite these closures, the company announced that all of its stores will remain open during the process, and online shopping will also be available. Crafts Retailer JOANN files Bankruptcy JOANN previously filed for bankruptcy in March 2024, when it originally cited issues with increasing interest rates and decreasing sales after a spike in sales during the COVID-19 lockdown in 2021 and 2022. Despite attempts in June 2023 to reduce costs, the company held over $1.06 billion in funded debt at the time of filing. Following this, the company exited its Chapter 11 bankruptcy and became a private company nearly a month later, saying it had strengthened its balance sheet while improving liquidity. Now a year later, the company is looking to sell. After exiting the previous bankruptcy, JOANN started to implement its next business plan, but the company hit a major roadblock when it encountered inventory challenges and steady, sluggish retail sales. Those factors resulted in major debt, which now sits at about $615 million for the company. Inflation and high interest rates, as referenced in the previous filing, continued to impact the company after its last restructuring. The company did post net sales of $2 billion in 2024, though inventory challenges did "irreparable harm" to its ability to service its restructured funded debt. As part of the bidding process, an initial bidder, Gordon Brothers Retailer Partners, has been established and has set the base price for bidding. JOANN, which was founded in 1943, currently operates approximately 800 stores and 40 distribution centers. The company employs 19,000 employees, 3,400 of whom are full-time and 15,600 part-timers. The retailer is best known for selling sewing, arts and crafts, and home decor merchandise.