NEW YORK - Joann fabric and craft realtor has filed for bankruptcy for the second time in a year. 

The 82-year-old realtor said in a statement to CNN Wednesday that "sluggish sales and inventory issues" forced the company to file for Chapter 11 bankruptcy for the second time since March 2024. 

The statement said the inventory issues were "acute and unexpected" and consumers stop spending so much on hobbies past the pandemic boom and spend more time at rivals Hobby Lobby and Michaels. 

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,” said interim CEO Michael Prendergast said in a press release, according to CNN. 

Joann is now seeking a sale of all of its assets. 

Employees will continue to be paid, and the company's stores and website will remain operational during the sales process.