Joann Inc., a longstanding provider of art supplies and fabrics in the U.S., has announced the impending closure of all its stores, following its recent filing for Chapter 11 bankruptcy protection. According to a statement obtained by Reuters, the 82-year-old retailer plans to sell all its assets to a group of buyers. Initially, Joann’s management aimed for a buyer to continue operating the business, however, the top bidder plans to commence liquidation sales at all store locations.
As of January, Joann operated over 800 retail locations across the United States, with several closures occurring in the preceding month. The company held inventory valued at $538.3 million and employed approximately 19,000 individuals nationwide, excluding Hawaii.
Despite its vast network, Joann reported liabilities totaling $615.7 million in its bankruptcy filing, including outstanding debts exceeding $133 million owed to suppliers. The monthly operational expenses, encompassing rent, amounted to $26 million.
Recent court filings reveal that Joann suffered from supply chain disruptions, leading to reduced availability of essential products. Additionally, irregular deliveries of yarn and sewing items posed a risk to its reputation as a comprehensive craft store.
Earlier this year, Joann initiated the closure of approximately 500 stores. A company spokesperson informed FOX Business that these closures were part of efforts to optimize the company’s value and sustainability.
The spokesperson elaborated that determining which stores to keep open was based on a detailed analysis of their performance and strategic relevance, emphasizing the importance of adjusting the store footprint as part of Joann’s strategic plans.
Joann’s decision follows a challenging period, marked by its initial Chapter 11 filing in March 2024—an unprecedented move in its history—without any immediate store closures at that time.
Customers can use Joann gift cards until February 28. The remaining store closures will be phased over several weeks to reduce disruptions for vendors, customers, and employees.
This report includes contributions from Reuters and FOX Business’s Danielle Genoverse.
