Joann to close 500 stores
Joann is downsizing its store portfolio by more than half.
The 82-year-old crafts and fabrics retailer, which filed for bankruptcy in January for the second time in less than year, is planning to close about 500 of its approximate 800 stores nationwide. Joann revealed the news in a court motion it filed on Wednesday,
"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," the company said in a statement. "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."
Joann noted that it determined which stores should remain operating "as usual at this time" after after a careful analysis of store performance and "future strategic fit."
"Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann,” the company said in the statement.
The states taking the biggest hit are California (61 stores closing), Florida (36), Michigan, Ohio and Pennsylvania (33), Illinois (26) and New York York (24). For a state-by-state list of the locations scheduled to go dark, click here.
In January, Joann said it was filing for bankruptcy facilitate a sale process “to maximize the value of its business.” The retailer is seeking a sale of substantially all of its assets, with Gordon Brothers Retail Partners serving as the “stalking horse” bidder.
In court documents, Joann blamed “unexpected” and “acute” inventory issues, and said it faced an “unexpected ramp-down, and, in some cases, the entire cessation of production” of important items that shoppers come to the store for. The issues took a big bite out of sales and put its $615 million debt in an “untenable position.”
