Bankruptcy

Popular fabric and crafts retailer Joann has been in business for over 80 years, cementing their name as the go-to destination for sewing, crafting, and quilting supplies. Sadly, the company recently filed for Chapter 11 bankruptcy, leading to a major downsizing in order to restructure the business and improve its finances. 533 out of Joann’s 800 locations across the United States will be closing down, with California seeing the highest number of shutdowns as 67 stores in the state go down. Although the company emphasized the need for this difficult decision, employees and customers in affected areas will be hit by the new development. In a bid to keep the unaffected stores running, Joann is also seeking court approval to sell its assets. Gordon Brothers Retail Partners are reportedly the leading bidder for most of Joann’s assets. However, details of the final sale remain undisclosed. Due to the changing retail landscape seeing more customers opt out of in-person shopping, Joann intends to continue serving them through its remaining locations and online store. The closure of more than half of Joann’s physical stores marks an inconvenient shift for those who rely on the retailer for supplies as they now have to travel further or shop via the website for their needs. What you need to know about the Joann Fabrics Store closing View this post on Instagram A post shared by Baller Alert (@balleralert) Executives proposed that closing down underperforming Joann stores to focus on profitable ones is playing the long game. While the company awaits the final outcome of the bankruptcy court proceedings, the retail giant has set up a website for customers to stay in the loop. Following closely behind California during these closures are Florida and then Michigan. Other states like Pennsylvania, New York, and Ohio are not left behind either. Joann Fabrics stores closing/WikimediaCommons Joann is not the only retailer facing similar financial and business challenges, as analysts predict that up to 15,000 stores will close across the country this year. Other major brands like Macy’s and Kohl’s have already announced similar downsizing efforts for matching reasons like economic difficulty and changed consumer behavior. Customers have started to complain online, especially business owners who get their supplies from retail stores. “Joann’s going out of business… coincidentally, I need a lot of yarn for a project I have in mind.. they will definitely be seeing me at some point,” someone wrote on X. “I'm crushed. My local Joann Fabrics is closing. More than half of the stores are closing nationwide,” another gushed. Joann Fabrics stores closing/Wikimedia Commons What the Joann store closing means for employees While Joann store customers will have to find alternative shopping options, possibly traveling farther to other Joann stores or relying on online shopping, which supply chain and shipping delays could impact, employees face even greater uncertainty. With more than half of the company’s stores shutting down, thousands of workers stand the risk of losing their jobs soon, and Joann has yet to disclose details about severance packages or transition support for those who will be affected. The company has acknowledged the impact these shut-downs will have on its workforce, promising to minimize disruptions where possible. View this post on Instagram A post shared by J. Desirée (@sewmuchjazz) In addition to retail workers, corporate employees may also be affected as there could be layoffs at its headquarters and regional offices. The company’s state financial troubles also raise concerns about whether it will be able to provide support to its workers during this restructuring. It is best that employees in marked locations begin to search for new jobs, although the retail job market is already competitive due to the shutdown of other major brands. As Joann moves through the bankruptcy proceedings, its future remains uncertain. Whether the company will emerge successfully from the restructuring depends on how well it adapts to market conditions. In the meantime, shoppers and employees can stay updated via Joann’s restructuring website.