Craft retailer JOANN is set to close a significant number of its locations. This decision comes less than a month after its second Chapter 11 bankruptcy filing. According to a recent court filing, approximately 530 of the company’s “underperforming” stores are slated for closure. These stores span over 40 states. Initially, JOANN sought bankruptcy protection in January. It had planned to keep its roughly 800 stores open throughout the proceedings.
“This decision was incredibly challenging. We know it will deeply affect our employees. It will impact our customers and the communities we serve,” said a JOANN spokesperson in a statement to Nexstar. “Through a thorough evaluation of store performance and strategic goals, we’ve decided which locations will remain operational. Adjusting our store network is a vital step toward securing a sustainable future for the company.”
As the bankruptcy process moves forward, more closures could follow. While the exact timeline for the shutdowns remains unclear, a hearing related to the case is scheduled for Friday.
This marks the second time JOANN has filed for bankruptcy, following similar challenges last year. The company attributed its previous filing to the rising interest rates. It also cited diminished sales in the aftermath of the COVID-19 pandemic. However, it managed to emerge from bankruptcy and transition into a privately held business.
On another note, Gordon Brothers is a firm recently involved in acquiring Big Lots after its own bankruptcy. It has been mentioned as a potential bidder for JOANN’s operations.
As the company navigates through this difficult time, the fate of these stores and its future trajectory remain uncertain.
