A national fabrics and crafts retailer is filing for bankruptcy for the second time within a year.

Joann filed for Chapter 11 again on Wednesday, according to CNN, citing struggling sales and “acute and unexpected” inventory issues. The company said an “unexpected ramp-down, and, in some cases, the entire cessation of production” of important items also put its $615 million debt in an “untenable position.”

Joann had previously filed for bankruptcy in March 2024 and emerged a month later after securing new financing without closing stores at the time.

However, USA Today reports the chain is now starting to close stores due to its financial struggles. At least eight locations are closing, including one Central New York location at 2309 N. Triphammer Rd in the village of Lansing; the Ithaca-area Cayuga Shopping Center store reportedly shut its doors on Jan. 11.

Joann fabrics, as it’s colloquially known, still has more than 800 stores operating, including in Clay, Cortland, Fayetteville, New Hartford, and more than 25 other New York state locations. Other stores closing or closed are reportedly in Iowa, North Carolina, Maryland, Pennsylvania, and Massachusetts.

The Associated Press reported last year that craft sales did well during the pandemic, but fell into declines in recent years amid competition from lower-priced rivals like Hobby Lobby, Target and Walmart.

The “last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step,” interim CEO Michael Prendergast said in a press release. “We remain committed to continuing to support them and serving our customers – the sewists, quilters, crocheters, crafters and other creative enthusiasts we have served for more than 80 years – during the process.”

According to CNN, Joann is seeking a sale of nearly all of its assets. Gordon Brothers Retail Partners, which recently bought a portion of Big Lots in bankruptcy, is currently the leading bidder at an undisclosed price.

John Bringardner, head of research firm Debtwire, told CNN that it was a mistake for Joann to not close stores during its first bankruptcy. If it doesn’t find a higher bidder in a bankruptcy auction, the retailer may be forced to hold going out of business sales and close more, if not all, its remaining locations.