NEW YORK (CNN/Money) - Frank's Nursery & Crafts, Inc. announced Wednesday that it filed for Chapter 11 bankruptcy protection, due to a steady decline in customers, unfavorable weather and general economic weakness.

According to a statement from Frank's, which filed in U.S. Bankruptcy Court for the Southern District of New York, the company will liquidate its assets and distribute the proceeds to its creditors.

Upon approval of the court, Frank's will hold going-out-of-business sales at its 169 retail locations and will sell its real property and leasehold interests, said the company in a statement.

The Troy, Mich.-based company has entered into a $27.5 million financing agreement with Kimco Capital Corporation, which will provide it with enough liquidity to sell off its assets.

The company's predecessor, which operated under the same name, emerged from a previous Chapter 11 bankruptcy proceeding in May 2002. Calls to the company for further comment were not immediately returned.