Joann, the well-known fabric and craft retailer, announced plans to close all 800 of its stores after failing to find a buyer to save its locations. This decision comes amid the company’s second Chapter 11 bankruptcy filing within a year. Initially, Joann planned to keep its stores open while seeking a buyer, but the company has now decided to shutter its entire retail footprint.
“JOANN leadership, our Board, advisors, and legal partners made every possible effort to pursue a more favorable outcome that would keep the company in business,” the company said in a statement. “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.”
The closures will impact locations across more than 40 states, with California, Florida, and Illinois among those hardest hit.
Joann’s financial troubles have been exacerbated by declining sales, mounting debt, and increased competition from online retailers and other brick-and-mortar competitors like Hobby Lobby and Michaels.
Joann’s second bankruptcy filing in January was intended to facilitate a sale of the company. However, the retailer has struggled to attract buyers for many of its locations. The company is seeking court approval to begin store closing sales immediately.
Recent Comments