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Joann Inc., who provided Americans with art supplies and fabrics for decades, recently announced that she was planning to close all of her American stores, just a month after deposit against bankruptcy of chapter 11.
In a statement obtained by Reuters on Sunday, the 82 -year -old announced his intention to sell all the assets to a group of buyers. Joann’s leaders originally hoped that a buyer would continue his activities, but the most offering should start getting out of sales to businesses in all places.
In January, Joann had more than 800 retail locations in the United States, although hundreds of people closed last month. Last month, the company also had $ 538.3 million in inventory and employed 19,000 people in all American states with the exception of Hawaii.
But the company also declared $ 615.7 million in debts when it has deposited a bankruptcy of Chapter 11, including more than $ 133 million due to its suppliers. The monthly cost of managing its hundreds of locations amounted to $ 26 million in monthly rent alone.
The main craft files for bankruptcy
Buyers enter a site by Joann Store LLC in Peoria, Illinois, United States, Wednesday, September 19, 2018. (Daniel Acker / Bloomberg via Getty Images / Getty Images)
Documents also show that Joann was recently faced with problems with its suppliers, who had eliminated certain products on which the chain was based. At the same time, deliveries of threads and sewing items have become unpredictable, threatening Joann’s reputation as an all-in-one store for craft lovers.
In January, the company began to end around 500 of its locations. A company spokesperson told Fox Business that closings were a step towards maximizing the value and longevity of its activities.
The leases of nearly 700 locations in the city of the party will be sold at auction
Caddies are in the window before a site of Jo-Ann Store LLC in Moline, Illinois, United States, Wednesday, September 19, 2018. (Daniel Acker / Bloomberg via Getty Images / Getty Images)
“A careful analysis of store performance and a future strategic adjustment for the company has determined which stores should remain operational as usual at the moment,” said the representative. “The dimensioning of our store footprint is an essential element of our efforts to ensure the best way to follow for Joann.”
Joann’s recent announcement comes after a difficult year for the company. In March 2024, he deposited chapter 11 for the first time in his history, although he avoided closing one of his 800 locations at the time.
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A customer enters a Joann store in El Cerrito, California, United States, Wednesday, January 8, 2025. (David Paul Morris / Bloomberg / Getty Images)
Customers with Joann gift cards are allowed to use them until February 28. The closure of other Joann stores will be deleted in the coming weeks to minimize disturbances for sellers, customers and employees.
Danielle Genovers of Reuters and Fox Business contributed to this report.
