Joann, an arts-and-crafts retailer recently revealed that they are planning to shutter 500 of its 800 remaining locations after their recent bankruptcy filing. This announcement came just a month after the venerable company which has been in business for over 80 years sought bankruptcy protection for the second time in under a year.
The consumer spending of the company continued to decrease. If the District of Delaware Bankruptcy Court grants its request, Joann would state it would close all its stores that are underperforming nationwide, from New York to Alaska.
The company in an email statement expressed, “This was an incredibly tough choice, knowing the profound effect it will have on our employees, customers, and the communities we support.”
Initially, Joann was known as Jo-Ann Fabrics with their headquarters in Hudson, Ohio, and has long been a go-to destination for art supplies. They offered plenty of things including yarn, fabrics, sewing machines, and seasonal items. The retailer operates in 49 states in the United States.
In March 2024, Joann filed for bankruptcy to boost its reduce its debt which led to its transition from a publicly traded entity to a private ownership. This initial filing was concluded the same year in August.
The retailer struggled to get back on its feet after a brief surge during the pandemic. On Wednesday, the company acknowledged that they are facing, “significant and lasting challenges in the retail landscape, which, combined with our current financial situation and limited inventory, have compelled us to take this action.”
The going-out-of-business sales of the company could begin soon as it has been indicated in a customer FAQ released by the company. In addition to this, Joann has been looking for court permission to stop the acceptance of gifts and cards both online and in-store within the next two weeks.
Business Journalist
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