More info:Joann Restructuring
RELATED:
Joann, the nationwide fabric and craft retailer, announces the closing of more than half of their stores across the whole country
Image credits:ajay_suresh / Flickr (not the actual photo)
It’s actually the second time the company has filed for bankruptcy—the first was in March 2024
Yesterday, February 12, Joann, a well-known fabric and craft retailer, filed for Chapter 11 bankruptcy protection for the second time in the last twelve months. The first case took place on March 18 of last year, and then the company had plans to cut over$500 millionin debt to become a privately owned company.
As we can see, the situation continues to worsen and as of today, Joann has announced the upcoming closure of 533 of its nearly 850 stores across the whole country. And this, most likely, means inevitablestaff layoffs.
Image credits:Craig Adderley / Pexels (not the actual photo)
“As part of the ongoing Chapter 11 process and our efforts to maximize the value of the business, JOANN has filed a motion seeking court authority to begin closing approximately 500 stores across the nation,” a spokesperson for JOANNclaimed. “This was a very difficult decision to make, given the major impact we know it will have on our Team Members, our customers and all of the communities we serve.”
“A careful analysis of store performance and future strategic fit for the company determined which stores should remain operating as usual at this time. Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for JOANN,” the official announcement says.
The largest number of stores, 61, will be closed in California, and also 36 in Florida, and 33 in Ohio, Michigan, and Pennsylvania, respectively. The remaining stores are expected to continue operating as usual.
Image credits:David / Flickr (not the actual photo)
It’s interesting to know to what extent the current case is related to the expected introduction ofimport tariffs—after all, back in 2018, the then-CEO of the company, Jill Soltau, together with 7 other retail CEOs, tried toconvincethe presidential administration to change its decision regarding the introduction of tariffs. At the time, the company claimed that American suppliers could not meet Joann’s quality and volume needs.
Image credits:Getty Images / Unsplash (not the actual photo)
Nowadays, the company faces serious issues, and stores in 49 states are going to close soon
Perhaps this is a coincidence, but maybe not. In any case, thestoresacross the country have already begun to close, and the opinions of the commenters in the news are very divided. Some people think that Joann simply kept the prices for its products incredibly high—and at the current moment, while even foodpricesare rising, not everyone is able to fork out for DIY stuff.
On the other hand, many responders—obviously those who regularly do crafts—cannot hide their sadness. They note that Joann offered goods of really high quality compared to its competitors—and that now it will be rather difficult to replace them. And you, dear readers, has your nearest Joann store also closed, or are you lucky enough to still have it?
Other responders despaired at losing their craft supply havens
Thanks! Check out the results:You May Like30 Nightmarish Financial Decisions That Left People Broke, Broken, And BewilderedGabija Palšytė30 Frugal Choices That Ended In Tears, Fires, And FiascosIlona BaliūnaitėGuy Works 50+ Hours/Week Only For His Successor To Automate Everything And Have Nothing To DoIndrė Lukošiūtė
Gabija Palšytė
Ilona Baliūnaitė
Indrė Lukošiūtė
Work & Money
