In a surprising turn of events, Joann Fabrics, a popular destination for all things craft-related, announced that it will be closing about 500 stores across the United States. This decision comes after the company filed for Chapter 11 bankruptcy protection just a few months ago. With over 800 locations operating at the start of this year, the news comes as a blow not only to the employees and customers of Joann but also to the craft community at large.
Why Is Joann Closing Stores?
Joann Fabrics isn’t the only retailer facing challenges in today’s economy, but its decision to scale back is particularly alarming for many crafters. The company attributes its closures to a mix of factors including weak store performance, inventory shortages, and ongoing economic pressures. These issues have caused the chain to reassess which locations are most viable to keep open.
- Approximately 500 stores will close as part of this restructuring effort.
- The closures coincide with Joann’s plans to reduce its long-term debt, which stands at over $2.44 billion.
- In-store sales for closing locations are set to begin on February 15th, giving customers one last chance to shop.
Going Out of Business Sales
For those looking to snag a good deal, Joann will kick off going-out-of-business sales starting February 15th in the affected stores. This means that customers can find discounts on fabrics, craft supplies, and seasonal decor items. It’s a chance to stock up, even if it’s bittersweet to see their beloved local stores shuttered.
Where Will Stores Be Closing?
While a full list of all locations is still under review, it’s known that stores in Texas will be significantly impacted, with 18 of its 43 locations scheduled for closure. Other cities across the country will also feel the effects as Joann evaluates the performance of its stores nationwide.
The Future of Joann Fabrics
Despite these significant changes, Joann Fabrics is committed to remaining a key player in the crafting industry. After restructuring and aiming to reduce its debt by approximately $505 million, the company hopes to emerge as a healthier version of itself. Joann is currently operating around 850 stores and continues its efforts to keep many locations open amidst this challenging time.
What’s Next?
Joann Fabrics is undergoing a tough transition, but there is hope for a brighter future beyond these closures. With new leadership under interim CEO Michael Prendergast, the retailer is energized by the possibilities of reimagining its approach to retail and focusing on what customers want. The company is optimistic about turning a new leaf and perhaps even opening new stores in the future once the dust settles after this major restructuring.
For now, crafters and Joann fans will have to keep a close eye on their local stores and take advantage of the upcoming sales, all while supporting their favorite crafting haven during this difficult chapter.