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Bankrupt Fabrics Retailer Joann Plans to Close 500 of Its 800 Stores
Fabrics and crafts retailer Joann will close 500 of its 800 stores in the coming months as it goes through its second Chapter 11 bankruptcy, according to published reports. CNN reported that the closings cover all 50 states, with California, Florida, Indiana, Michigan, New York, Pennsylvania and Washington among those most heavily affected.
In its second bankruptcy filing last month, Joann cited inventory issues that were “acute and unexpected,” according to CNN. The company had previously revealed in court documents that it faced an “unexpected ramp-down, and, in some cases, the entire cessation of production” of some critical products.
The company also said it at the time it was looking for a buyer. Newly filed court documents reveal that as the “sale process progressed, and prospective bidders continued to conduct diligence and refine their potential bids, the debtors and their advisors were able to identify a subset of underperforming stores that are unlikely to be considered or included in any going concern bid.”
In all, more than 15,000 stores are projected to close across the U.S. this year, CNN reported, citing data from Coresight Research.
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