Crafts retailer Joann has filed for Chapter 11 bankruptcy and will close all its US stores. The company reported $615.7 million in debt when it filed and had over 800 locations across the country. In January, Joann began closing around 500 of its locations, citing a need to “right-size” its store footprint.
Joann Inc., which has supplied art supplies and fabrics to Americans for decades, announced that all its US stores will be sold to a buyer group. The highest bidder will start going-out-of-business sales at all locations. Customers with Joann gift cards can use them until February 28.
The company’s recent announcement comes after a difficult year, during which it faced issues with suppliers and unpredictable deliveries of yarn and sewing items. As part of its restructuring efforts, the company aims to minimize disruption to vendors, customers, and employees by phasing out store closures over several weeks.
Joann’s bankruptcy filing marks a significant blow to the craft industry, which has already seen challenges in recent years. The retailer’s closure will likely have an impact on local communities and small businesses that rely on its services.
Source: https://www.foxbusiness.com/retail/crafts-retailer-joann-closing-all-u-s-stores-one-month-filing-chapter-11-bankruptcy