JOANN, the well-known fabrics and crafts retailer, has officially announced it will shutter all of its stores nationwide, signaling the end of an era for many craft enthusiasts. This decision follows the company's alarming financial struggles, as it has filed for Chapter 11 bankruptcy twice within just one year.
Founded 80 years ago, JOANN has been synonymous with crafting and sewing supplies, serving as the go-to location for seamstresses, quilters, and crafters across the United States. The company’s drastic decision was precipitated by the auctioning off of its assets to the financial services company GA Group, which plans to wind down operations and commence going-out-of-business sales at all locations, pending bankruptcy court approval.
According to the company's latest statement, the need for store closures arose after JOANN faced significant challenges, both operationally and financially. A statement read, "JOANN leadership, our Board, advisors, and legal partners made every possible effort to pursue a more favorable outcome." Despite their attempts to keep the company afloat, the decision was made to proceed with closing all locations.
Initially, JOANN had announced plans to close approximately 500 of its more than 800 stores. By February 2024, the store had begun the bankruptcy proceedings which led to the subsequent reduction of operational stores.
The recent auction saw GA Group, along with JOANN's lenders, acquiring “substantially all of JOANN’s assets,” setting the stage for the complete shutdown of the retailer. JOANN stated, "We are committed to working constructively with the winning bidder to conduct this orderly wind-down of operations." Plans for liquidation sales have already commenced, and stores are expected to close by the end of May.
With around 19,000 employees affected nationwide, the closure is set to alter the employment and retail landscapes significantly. Scott Carpenter, CEO of GA Group's Retail Solutions, indicated plans for the affected employees, including the implementation of job fairs and offering retention plans to assist those seeking new employment.
Craft enthusiasts, like Stacey Brumfield from Alexandria, Louisiana, have expressed their disappointment over JOANN's closure. Having relied on her local store for crafting supplies for nearly ten years, Brumfield lamented, "Whatever you needed, they probably had it, and it was going to be the quality you wanted."
The store closures have sparked conversations among crafters nationwide, raising concerns about where they would source their materials now. Many have relied heavily on JOANN for various crafting needs, and finding alternative local suppliers may prove difficult as many suppliers do not carry the same range of products.
Despite attempts to mitigate impacts, the reduction of store locations is expected to erode customer access to not just crafting materials but also the social aspect of craft gatherings which many have cherished over the years.
While the timeline for the specific closing dates is still being finalized, JOANN has publicly indicated the urgency of their situation by moving forward with liquidation sales across the board. The company noted its intention to focus solely on operational necessities to facilitate this wind-down process.
Local communities are already feeling the impact, as Joann stores have long served as community hubs where crafters gather and learn from one another. With the shutdown, many fear losing those spaces, which have been important for crafting workshops and community gatherings.
Going forward, the retail sector may see additional consolidation as more companies continue to struggle amid changing consumer preferences and economic uncertainty. This shift could potentially leave big gaps in local retail footprints, especially for niche markets such as crafts and sewing.
Analysts and retail experts will be closely monitoring the fallout from JOANN's closure, as it highlights challenges faced by many traditional retailers adapting to the digital marketplace and changing consumer behaviors.
Overall, the closure of all JOANN stores marks the end of a distinct chapter not only for the retailer but also for the many communities and individuals who have come to rely on its offerings for creative expression over the decades. The company's broader impact on crafting industries and local economies will undoubtedly resonate for years to come.