Hudson, Ohio based fabric and craft retailer JOANN, a brand for sewing enthusiasts and crafters, filed for Chapter 11 bankruptcy protection on Wednesday.

Although the announcement comes just days before JOANN plans to close its Hermitage location, the company says in a statement that it will continue operating its other stores and website while it undergoes a court-supervised sale process.  JOANN also has stores in Niles and Boardman.

JOANN’s leadership cited “significant and lasting challenges in the retail environment” for the filing. The company became private in April 2024 after filing for bankruptcy and has been struggling with financial difficulties in recent years.

Chapter 11 bankruptcy allows a company to restructure its debt and emerge from bankruptcy as a financially healthier business. In JOANN’s case, the company is seeking a buyer to acquire its assets.  

Gordon Brothers Retail Partners has been named as the “stalking horse” bidder, meaning they have submitted the first offer to purchase JOANN. However, the company is open to receiving higher bids during the court-supervised auction process.  

JOANN’s management team expressed optimism about the company’s future, saying that finding a new owner will allow JOANN to continue operating its stores and serving its customers.

The company stated that employees will continue to receive pay and benefits throughout the sale process.

The company statement says there should be no disruption to its business operations. Customers can continue to shop in stores and online as usual.