This popular crafts retailer now faces high risk of bankruptcy following several store closures and analytical reports.
Joann is currently grappling with the possibility of a bankruptcy filing, according to Bloomberg.
The retailer has 850 outlets across 50 states.
Joann is exploring options to address its mounting debt, including seeking a deal with lenders and securing additional capital.
The store has not yet responded to requests for comment on the reported bankruptcy plans.
However, reports follow the recent closure of two Joann stores in Ohio, along with previous closures in other states.
Social media discussions have highlighted the impact that store closures might have on local communities.
When a Joann in Wooster closed in February, one customer wrote on Facebook, “I’m really sorry about this. For those of us who enjoy sewing and crafting, it will be a huge loss!”
“We’re sad to see our Wooster store closed,” posted another user.
Financial guidance websites such as CreditRiskMonitor have also flagged Joann as a high-risk candidate for bankruptcy, citing its financial struggles.
The company says the closures were part of “routine store location evaluation and optimization.”
However, Joann reported a net sales decline of 4.1% compared to a year ago in its most recent earnings call.
Established in 1948, Joann offers both online and in-store shopping for sewing and crafting supplies.
Joann remains a popular destination for sewing and crafting enthusiasts across the United States.
But the company’s struggles come during a challenging retail environment, particularly for brick-and-mortar stores, reports The-Sun.
“The outcome of a bankruptcy filing could have significant implications for the company’s employees, customers, and stakeholders.
It could potentially result in the closure of many of its 850 nationwide stores.”
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Also Read: This Massive Cosmetics Company Now Closes in The US
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Other Economy News Today
A massive clothing retailer is now closing in California after many businesses have been largely impacted by a rise in crime.
Zara is due to shutter its doors at the location in the Union Square shopping district in downtown San Francisco in January 2025.
This is due to an expiring lease that Zara will not be renewing, a company spokesperson told local news station KRON-TV.
But Zara has not permanently exited the city, reports The-Sun.
Located a few blocks away, the location inside the Emporium Centre Mall will remain open.
Customer feedback about the Union Square store was mixed, with recent Google reviews suggesting a need for improvements.
Some customers expressed dissatisfaction with the store’s messy interiors, limited options, and long checkout lines.
San Francisco has suffered badly from store closures compared to other US cities as retailers have found their stores to be heavily impacted by crime.
In the last two weeks, Macy’s and The North Face became the latest stores to announce their departures from the city.
Despite the closure of the downtown San Francisco store, Zara is pursuing a broader physical retail strategy.
The Spain-based brand has a wider plan to revamp the brand’s presence across the US.
Zara is renovating 12 stores across the country, including prominent locations on Fifth Avenue in New York City and Michigan Avenue in Chicago.
Additionally, the chain is set to open 10 new stores, including locations at The Grove in Los Angeles and the Mall of Louisiana in Baton Rouge.
This expansion plan coincides with similar moves by other retailers, including Uniqlo, Ross Dress for Less, and Primark, all of which are eyeing growth opportunities.
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Also Read: A New Round of Massive Layoffs Now Hits Pennsylvania
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