Shoppers arrive as others exit Joann Fabrics and Crafts at 180 JFK Plaza on Wednesday in Waterville. The store is one of approximately 800 scheduled to close as Joann Inc. seeks Chapter 11 protection. Rich Abrahamson/Morning Sentinel

WATERVILLE — Joann Fabric and Crafts at JFK Plaza is one of about 800 Joann Inc. stores scheduled to close as  the company seeks Chapter 11 protection.

The store, sandwiched between Hannaford and Mirakuya Sushi & Steak House at the plaza off Kennedy Memorial Drive, has for many years carried fabric, sewing supplies and machines, home goods and craft items. It cites a weak retail market, low inventory and other struggles.

“Following a comprehensive sale process and auction, GA Group together with the Prepetition Term Loan Agent, has been selected as the winning bidder to acquire substantially all of JOANN’s assets,” a news release dated Tuesday says. “In connection with this agreement, subject to Bankruptcy Court approval of the transaction, the winning bidders plan to begin winding down the Company’s operations and conduct going-out-of-business sales at all store locations.”

Asked when the store is closing and when sales will begin, an employee of the Waterville store said Wednesday that she could not comment. But a recorded message on the store’s phone system said some stores have begun liquidation sales.

“This is a very difficult time, given the impact it will have on our beloved team members, customers and communities,” it says. “Our stores remain open nationwide and any final store closing dates related to the bankruptcy have not been established.”

The release says the company leadership, board of directors, advisors and legal partners “made every possible effort to pursue a more favorable outcome that would keep the company in business. We are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on all our stakeholders. We deeply appreciate our dedicated Team Members, our customers and communities across the nation for their unwavering support for more than 80 years.”

Asked Wednesday in an email when the Waterville store will close, how many employees will be impacted, and when store sales will be conducted, company spokesperson Amanda Hayes referred a reporter to the company’s statement issued Tuesday.

Joann Inc., based in Hudson, Ohio, announced Jan. 15 this year that it had started voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware to facilitate a sale process to maximize the value of its business. It called itself the nation’s largest category leader for sewing and fabrics with one of the largest arts and crafts offerings.

It was the second time in a year that the company had filed for bankruptcy. It also filed in March 2024.

The January release said the company was seeking court approval to start “a process for the sale of substantially all of its assets under Section 363 of the U.S. Bankruptcy Code pursuant to which Gordon Brothers Retail Partners, LLC (“Gordon Brothers”) would serve as the ‘stalking horse’ bidder. The proposed transaction was subject to higher and better offers, among other conditions, and Joann was continuing to actively solicit alternate bids.

If other qualified bids were submitted during the court-supervised sale processes, it said, the company planned to conduct an auction or auctions with the stalking horse bid setting the floor for the processes.

“Since becoming a private company in April, the Board and management team have continued to execute on top and bottom-line initiatives to manage costs and drive value,” said Michael Prendergast, Joann’s interim chief executive officer. “However, 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. After carefully reviewing all available strategic paths, we have determined that initiating a court supervised sale process is the best course of action to maximize the value of the business. We hope that this process enables us to find a path that would allow JOANN to continue operating as a going concern.”

The company says store gift cards are still good through Friday. More information is available at joannrestructuring.com.