Joann Fabric Retailer Announces Store Closures After Bankruptcy
Joann, a leading fabric and craft retailer, is closing all 800 stores following second bankruptcy amidst financial struggles.
Overview
Joann, the fabric retailer with 800 stores, is shutting down as it files for bankruptcy for the second time. The company has cited losses from online competition and disruptions due to COVID-19 as key factors. Customers can expect liquidation sales, but gift cards will only be accepted until Feb. 28. This marks the end of an 80-year presence in the crafting sector, leaving its stores with significant financial losses and operational challenges. Analysts indicate this trend reflects broader issues facing brick-and-mortar retailers post-pandemic.
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Joann decided to close all its stores after the highest bidder in its asset sale intended to start going-out-of-business sales at all locations, rather than continuing operations. This decision reflects the company's inability to find a buyer willing to keep the business running as usual.
Joann faced significant challenges including a tough retail environment, inventory issues, and disruptions in supplier deliveries. These factors, combined with financial struggles, led to its second bankruptcy filing and eventual store closures.
Customers can expect liquidation sales at closing stores. However, gift cards will only be accepted until February 28, 2025, after which they will no longer be valid.
Joann's closure reflects a broader trend of brick-and-mortar retailers facing challenges post-pandemic, including increased online competition and shifts in consumer spending. This trend is expected to lead to thousands of store closures across various businesses in 2025.
History
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