Joann Stores to Close Nationwide After Bankruptcy and Acquisition
After more than 80 years of serving the crafting community, Joann stores are set to close all of their 800+ locations across the United States this spring. The Hudson, Ohio-based retailer, a staple for fabric, crafts, and home decor, will be conducting going-out-of-business sales at each store before permanently shuttering operations. This announcement marks a significant shift in the retail landscape for crafters and hobbyists nationwide.
The closure follows a challenging period for Joann, marked by financial struggles and inventory issues. The company twice filed for Chapter 11 bankruptcy in the past year in an effort to address its mounting debts. Despite these efforts, Joann’s remaining assets were eventually put up for auction and acquired by a new ownership group in late February, signaling the end of an era for the beloved craft store.
Going-Out-of-Business Sales Underway
For loyal Joann customers, the immediate news is the opportunity to snag deals during the company’s going-out-of-business sales. These sales, which commenced on February 15th, are expected to continue for the next few months, offering customers special prices on all in-store items. Shoppers can anticipate discounts on a wide range of products, including fabrics, yarns, craft supplies, home decor, and seasonal merchandise.
According to Scott Carpenter, CEO of GA Groups Retail Solutions and Wholesale & Industrial Solutions teams, most closing Joann stores are expected to remain open until the end of May. GA Group is a retail liquidator, that along with Joann’s term lenders purchased the assets of Joann. This provides shoppers with a window of opportunity to take advantage of the discounts being offered. However, it is important to note that inventory is limited to what is currently available on-site, meaning that popular items may sell out quickly.
While the specific details of the discounts vary by location, initial reports indicate base discounts ranging from 10% to 20% across various stores. Some items, particularly seasonal merchandise like Christmas decorations, may be discounted as high as 75%. To get a sense of the potential deals, a closing Joann location in Stockton, California, is offering significant markdowns on a variety of items.
It’s important to note that all sales are final and some exclusions may apply. Joann stores will not be accepting personalized discounts, discount partnerships, or returns during the going-out-of-business sales. Customers are encouraged to carefully review the store’s policies before making any purchases.
The End of an Era for American Crafters
The impending closure of Joann stores has been met with disappointment and frustration from American crafters. For decades, Joann has served as a community hub for hobbyists, providing access to a wide range of supplies, inspiration, and educational resources. The closure of these stores represents a significant loss for the crafting community.
While the physical stores are closing, Joann has stated that customers will be able to continue to shop for Joann products online and through the Joann mobile app. All three of Joann’s commerce platforms will remain open and in-operation during the going-out-of-business sales. The company has assured customers that any dates for store closures or changes to the website and app will be communicated as soon as possible. However, the online experience may not fully replicate the in-person browsing and tactile experience that many crafters have come to value.
Financial Troubles and Bankruptcy Filings
The closure of Joann stores is the culmination of a long period of financial challenges for the retailer. The company struggled to adapt to changing consumer preferences and the rise of online retailers, leading to declining sales and profitability. These challenges were exacerbated by inventory management issues and the impact of the COVID-19 pandemic.
In an attempt to address its financial difficulties, Joann filed for Chapter 11 bankruptcy twice in the past year. Chapter 11 bankruptcy allows a company to reorganize its debts and operations while continuing to operate. However, in Joann’s case, the bankruptcy filings were not successful in turning the company around.
The company’s remaining assets were ultimately put up for auction and sold to a new ownership group, which decided to liquidate the company’s assets and close all of its stores. This decision reflects the difficult economic realities facing many brick-and-mortar retailers in the current environment.
Implications for the Retail Landscape
The closure of Joann stores will have a significant impact on the retail landscape for craft and hobby supplies. Joann was one of the largest players in this market, and its absence will create opportunities for other retailers to expand their market share.
Competitors such as Michaels and Hobby Lobby may benefit from the closure of Joann, as customers look for alternative sources for their crafting needs. Online retailers like Amazon and Etsy are also likely to see an increase in demand for craft supplies.
The closure of Joann also raises questions about the future of brick-and-mortar retail in general. As consumers increasingly shop online, traditional retailers are facing growing challenges. In order to survive, retailers need to find ways to offer unique experiences and build strong relationships with their customers.
Looking Ahead
While the closure of Joann stores is a loss for the crafting community, it also represents an opportunity for new ideas and innovations to emerge. As the retail landscape evolves, new businesses and models are likely to emerge to meet the needs of crafters and hobbyists.
It is possible that a new company could acquire the Joann brand and relaunch the stores in the future. However, it is also possible that the crafting market will become more fragmented, with a greater emphasis on online retailers and independent craft stores.
In the meantime, crafters can take advantage of the going-out-of-business sales at Joann stores to stock up on supplies and materials. While the closure of these stores marks the end of an era, the passion for crafting will undoubtedly continue to thrive.
