Crafts Retailer Joann Files Second Bankruptcy in a Year (4)

Crafts and fabric retailer Joann Inc. filed bankruptcy protection for the second time in less than a year in order to quickly find a buyer willing to rescue the company from liquidation.

Under a proposed deal with lenders who are owed more than $450 million, the company must hold an auction within 30 days or risk losing its access to cash being held as collateral, according to court documents filed Wednesday.

The company must first win court approval for the sale process. Joann already has an offer from liquidator Gordon Brothers Retail Partners, which would serve as the initial ...