Major Retailer Of Craft Supplies JOANN Declares Bankruptcy

(NationalUSNews.com) — On Monday, March 18, Hudson, Ohio retailer Joann, formerly known as Jo-Ann Fabrics, filed for Chapter 11 bankruptcy after 81 years in business. During the process, customers should expect to find the arts-and-crafts stores and their website still open for business as usual. In the official press release announcing the bankruptcy, Chris DiTullio, chief customer officer and co-lead of the interim office of the CEO, commented that the company takes great pride in serving its millions of creative customers.

The company may receive as much as $132 million in new capital, and their debt could be reduced by about $505 million. After the completion of the Chapter 11 process, which may be as early as late April 2024, the company will most likely revert to private ownership by its lenders and other stakeholders and no longer be listed on Nasdaq or other national stock exchanges. While this will make a big difference in how the company is run, it should not affect customer shopping experiences.

During the pandemic, many DIY businesses experienced a boom in sales due to people being at home more and taking up hobbies. However, with lockdowns just a painful memory, sales have steeply tapered off. With inflation taking a bigger bite out of consumer’s budgets, people have been cutting sharply back on unnecessary purchases, causing some issues for entertainment and hobby businesses. Joann’s competitors, Michael’s and Hobby Lobby, are both privately owned and have not released any information about how they are faring in the current economy.

While the company is undergoing significant restructuring and they hinted at layoffs in September, they have so far given no indication they may be closing any of their stores, of which there are over 800 nationwide. DiTullio said that over the past few months, the company has been making meaningful improvements through their “Focus, Simplify, and Grow” initiatives, and they are confident that the changes will provide long-term growth.

Copyright 2024, NationalUSNews.com