Joann, a once popular craft chain, has filed for voluntary Chapter 11 bankruptcy proceedings, according to a an announcement.

A St. Louis trucking company and its equipment leasing affiliate recently filed for Chapter 11 bankruptcy, citing the “challenges of the freight market” as one of the main reasons they are seeking to reorganize.

The casual restaurant sector faced financial distress in 2024 with several major chains having no choice but to file for Chapter 11 bankruptcy protection to save their businesses from closing permanently.

For some companies, bankruptcy can mean the end. For others, it can be a way to restructure and stay afloat amid business challenges.

In the latest sign of trouble for specialty retailers, Joann is seeking Chapter 11 protection for the second time in less than a year.

Sporting goods retailers have battled to stay afloat after the Covid-19 pandemic rocked the nation, forcing retailers in most sectors to shut down operations for long periods in 2020. Aside from closing stores and reducing customer occupancy in stores to promote physical distancing measures,

Craft retailer Joann Inc filed for Chapter 11 protection in Delaware on Wednesday, saying that inventory shortages had forced it to back into bankruptcy for the second time in less than a year.

Joann filed for bankruptcy, its second in less than a year as the company looks to maximize the value of its business.