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From the Daily Mail: A beloved craft and fabric retailer with a history spanning over 80 years filed for bankruptcy Wednesday morning for the second time in two years.
And experts warn it is now set to go out of business entirely after it made a big blunder while it was reorganizing its business after filing for Chapter 11 last March.
Joann, which operates in nearly every US state, shut zero stores and tried to soldier on – rather than cutting loss-making shops and ending pricy leases.
That was a huge blunder and leaves it open to being bought by the same asset-stripping firm that scooped up Toys R Us and Gymboree – and seeing all stores close.
John Bringardner, Head of Debtwire, said in a statement to the Daily Mail, “Joann kept all locations open after their last bankruptcy, which is the opposite of what a retailer is supposed to do. You must reject leases from unprofitable locations and downsize. They didn’t, and now they are going to liquidate.”
Bringardner explained, “Joann’s stalking horse bidder is Gordon Brothers, a well known liquidator of retailers like Gymboree, Toys R Us and BCBG. Unless Joann is able to find a higher bidder during a bankruptcy auction, Gordon will take control of the company and most likely launch going out of business sales, and remaining employees will be laid off.”
Last week, the retailer, which has 815 stores across the nation, closed six stores, located in Burlington, Iowa; Owings Mills, Maryland; Holyoke, Massachusetts; Ithaca, New York; Hickory, North Carolina; and Williamsport, Pennsylvania.
According to the report, Joann still insists that it has no plans for widespread shutdowns or going out of business. However, experts are warning that is exactly what is likely to happen.
Joann Fabrics just filed for bankruptcy AGAIN.
I don’t think it’s a coincidence that Joann went ALL the way woke before they went bankrupt. Just look at these 3 screenshots from their site. Pronouns, a DEI Council, racist grants, $$ for an org that supports sex changes for kids… pic.twitter.com/uraQaac6FI
— Robby Starbuck (@robbystarbuck) January 15, 2025
Craft retailer Joann filed for Chapter 11 protection in Delaware, saying that inventory shortages had forced it to back into bankruptcy for the second time in less than a year https://t.co/urVWTdde1N pic.twitter.com/UFQCtfnst7
— Reuters Legal (@ReutersLegal) January 15, 2025
Fabrics and crafts retailer Joann Inc. filed for Chapter 11 protection in Delaware bankruptcy court with $615.7 million in debt and a plan to sell its assets, the company’s second Chapter 11 filing in less than a year. https://t.co/NVmIqz3TZm pic.twitter.com/CGKZs3KU6a
— Law360 (@Law360) January 15, 2025
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