Joann, a long-standing destination for sewing and crafts enthusiasts, has filed for bankruptcy. The news comes as consumers are cutting back on nonessential items and facing increased competition from online retailers. Despite this, Joann reassured customers that it does not plan to close any of its 829 stores.
The company, founded in 1943, has secured approximately $132 million in new financing and expects to reduce its debt by $505 million. After completing the bankruptcy process, Joann will transition to a private company, a move that the Chief Financial Officer believes will provide the resources necessary to improve product assortments and customer experience.
Joann’s bankruptcy filing is part of a trend among specialty retailers struggling with declining sales due to online competitors. Other retailers that have filed for Chapter 11 bankruptcy include Bed Bath & Beyond, Christmas Tree Shops, and David’s Bridal. Despite Joann’s presence in the fabrics and textiles industry, it has faced challenges in retaining customers to competitors like Hobby Lobby.
As the situation with Joann unfolds, updates will be made to this story.
