A beloved retailer is now at high risk of bankruptcy due to a massive debt load and after struggling to make on-time payments.
According to Creditsafe Head of Brand Ragini Bhalla, hobby retailer Joann has been late in paying its bills, something which often foreshadows a bankruptcy filing.
“Creditsafe data shows that Joann struggled to make on-time payments in the second half of 2023. For most of that time, about 20% to 31% of its bills were paid late (1-30 days), while about 1% to 8% of its bills were paid late (31-60 days),” he shared.
“Sales have also been falling.”
“Given the struggles JoAnn has had with cash flow, its inability to stay current with many of its bills, its declining sales in FY 2023, and its $1 billion debt load, our Creditsafe algorithm has classified the company as a high risk of becoming seriously delinquent on payments and could be headed for bankruptcy very soon.
Without strong leadership (still no permanent CEO), it could be hard to right the ship,” he said in an email.
Net sales declined by 4.1% compared to the same period last year to $539.8 million with total comparable sales decreasing 4.1%, the company shared in its fourth-quarter earnings report.
Joann’s interim leaders, as all executives do in this situation, tried to paint a positive picture.
“We are pleased with our third quarter results and importantly, have increased our top line full-year outlook.
Our third quarter appeared to focus on operational retail fundamentals with an agile, data-driven approach helping us to win in our core categories, while over-delivering on the implementation and execution of our Focus, Simplify and Grow cost-savings initiative,” Chief Customer Officer Christopher DiTullio said during the Q3 earnings call.
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A California restaurant now announces an unexpected closure after a long 20 year run in Downtown Disney.
Tortilla Jo’s announced it would be closing its Downtown Disney location at Disneyland in Anaheim, California, on Wednesday.
Customers are heartbroken, reports The-Sun.
The location will officially close down on March 31st.
Tortilla Jo’s is described as a lively restaurant in the heart of Downtown Disney.
“Savor authentic south-of-the-border specialties in a vibrant setting in the heart of the Downtown Disney District,” a description from Disney reads.
“A bright, welcoming space provides a casual yet festive backdrop for celebrations and impromptu dining alike.
“Enjoy your meal on the patio, amidst charming Spanish tiles, ceramic pottery, and rustic wooden furniture, or bask in the beautiful SoCal weather on the spacious Cantina Terrace surrounded by string lights and the energy of the promenade.”
Tortilla Jo’s served Disneyland goers for 20 years.
The Mexican restaurant announced it would be closing in an Instagram post.
“To our Tortilla Jo’s familia, thank you for an incredible 20 years!” Tortilla Jo’s said in the post.
“Our last day of service will be March 31 — don’t miss your chance to enjoy your favorite dishes and raise a glass to all the memories we’ve made together over the past two decades.
“Visit us one last time and celebrate Tortilla Jo’s!”
The Mexican restaurant said it will be having special closing deals coming soon to look out for.
It also said that its ventures with Disney have not come to a complete end and that the brand will have new Mexican restaurants coming to Downtown Disney in 2024 as well.
It is currently unclear what these new restaurants will be like.
“Stay tuned as we share our final specials and more details on our newest Downtown Disney Mexican restaurants coming in 2024.”
Tortilla Jo’s has another pop-up called Taqueria by Tortilla Jo’s that will also be closing on April 13.
“Taqueria by Tortilla Jo’s will stay open until April 13,” the post added.
Dedicated fans of Tortilla’s Jo’s expressed their sadness about the restaurant closing in the comments of the post.
Also Read: A US Company Now Declares An Unexpected Bankruptcy
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