Christopher Parmenter, 28, appeared in the Bendigo Magistrates' Court on Monday where he pleaded guilty to 11 charges stemming from the January affray.

He was jailed for 18 months with a non-parole period of 12 months, after the magistrate described the attack as "one of the worst incidents" he's ever seen.

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The court heard on January 4 this year, Parmenter was with two associates in the Hargreaves Mall when one of the men withdrew some cash from an ATM.

The group progressed down Hargreaves Street where they stopped outside the Reject Shop.

A physical altercation broke out between Parmenter and one of the men after Parmenter tried to take the withdrawn cash.

The third man tried to break up the scuffle and Parmenter pushed him before taking a kitchen knife out of his bag and slashing the man across the arm.

The victim was left with a deep cut across his forearm that was bleeding heavily.

The court heard several bystanders witnessed the attack and workers from the Reject Shop were worried Parmenter would enter the business.

The staff members locked the store's doors after allowing terrified witnesses to hide inside.

The court heard Parmenter tried to break into the store and smashed a glass door.

Seven people contacted 000 in relation to the attack and police arrived a short time later.

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Officers had to use pepper spray to restrain Parmenter after he refused to cooperate. He was arrested but was deemed unfit for interview.

The court heard the victim of the stabbing needed to be transported to the Sunshine Hospital for surgery. The man, who had tendon damage from the attack, required extensive rehabilitation for his injuries.

Parmenter on Monday also pleaded guilty to a series of attacks in the days and hours leading up to the stabbing.

Earlier on January 4, Parmenter had threatened a man with a knife after he tried to get him to leave the Uniting Care Bendigo Outreach Centre on Forest Street.

The court heard Parmenter held the knife at the man's face, making him fearful for his life.

Parmenter left the service but saw the victim again on a public bus a few hours later. The 28-year-old pushed the man, jabbed a knife at his abdomen, and headbutted him.

The victim was able to leave the bus and contact the police. The man experienced nausea and a headache from the attack.

Parmenter also assaulted another man on a bus on October 14 last year, a day after smashing a window at the Quality Hotel Lakeside on Napier Street in Bendigo.

Defence lawyer Deniz Yildirim told the court Parmenter had a very long and complex psychiatric history.

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Mr Yildirim said his client was diagnosed with anxiety and depression as a teenager, which was also when he started abusing alcohol, cannabis, and methamphetamine.

The defence lawyer said Parmenter began having auditory hallucinations as a 17-year-old, and was diagnosed with paranoid schizophrenia and paranoid personality disorder in 2017.

Mr Yildirim told the court while Parmenter had previously failed to comply with community corrections orders, he wanted another chance so he could receive support for his housing, mental health, drug, and alcohol issues.

But Magistrate Russell Kelly said the seriousness of the offending warranted a substantial jail term.

Mr Kelly said the attack outside of the Reject Shop was "one of the worst incidents" he's seen in his 20 years of criminal law.

The magistrate said the behaviour was "shocking" and the community's protection needed to be considered.

Mr Kelly convicted and sentenced Parmenter to 18 months in jail with a non-parole period of 12 months.

His 77 days of pre-sentenced detention were reckoned as already served.

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