Joann Inc. to Liquidate All Stores After Bankruptcy Filing
NEW YORK – Joann Inc., a well-known retailer in the fabric and crafts sector, has announced that it will be closing all of its store locations across the United States. This decision follows the company’s recent Chapter 11 bankruptcy filing, marking the second instance of this nature within a year.
Bankruptcy and Store Closures
Recent Developments
Earlier in January, Joann had announced plans to close over 500 stores, which constitutes more than half of its nationwide presence. Subsequently, a recent auction concluded with financial services firm GA Group and Joann’s term lenders securing a bid to acquire the majority of the company’s assets. This acquisition entails the initiation of going-out-of-business sales at all locations.
History of Financial Struggles
This recent bankruptcy filing follows Joann’s prior Chapter 11 submission in March 2024, which led to its emergence as a private entity. Unfortunately, persistent operational difficulties forced the company to seek bankruptcy protection once again.
Official Statements and Next Steps
In an official statement, Joann’s leadership expressed regret over the circumstances: “Joann leadership, our board, advisors and legal partners made every possible effort to pursue a more favorable outcome that would keep the company in business.” The company acknowledged the need to work collaboratively with the winning bidder to ensure a structured and orderly shutdown, aiming to minimize disruptions for all stakeholders involved.
Operational Status
As Joann enters the liquidation phase, the company has assured customers that its stores, website, and mobile application will remain operational during the going-out-of-business sales.
Conclusion
The announcement of Joann Inc.’s closures marks a significant development in the retail landscape, highlighting the ongoing challenges faced by brick-and-mortar retailers amid changing consumer behaviors and market conditions.
Source: This report includes information from the Associated Press and statements released by Joann Inc. during its restructuring process.
