Joann fabric store files for bankruptcy again. Will Kentucky stores close?
Joann fabrics and craft store filed for bankruptcy for a second time within a year and is seeking a sale.
The retailer said sluggish sales and inventory issues forced Joann to file for Chapter 11 again, CNN reported. Joann first filed for bankruptcy in March 2024 and emerged a month later as a private company, keeping all of its stores open.
The lack of availability of items for which customers had come into the stores though helped to put the chain’s $614 million debt into an “untenable position,” CNN said.
The company is looking to sell its assets to Gordon Brothers Retail Partners, which would liquidate the business, but it continues to consider other bids.
Physical stores and its online store continued normal operations; but the chain recently announced some closures, taking place this week.
The chain has about 850 stores in 49 states, according to its website.
It filed for Chapter 11 bankruptcy protection in March. After finishing the bankruptcy process, then-CEO Scott Sekella said about 95% of the operating 815 stores turned a profit. In a statement to Retail Dive, Amanda Hayes, Joann’s director of corporate communications, said the stores being shuttered are part of a routine evaluation process, not a major closing event. She cited new or remodeled sites opened recently in Great Falls, Montana, and Maplewood, Minnesota.
Where are Joann stores in Indiana?
There are about 20 stores in Indiana, including locations in Indianapolis, Greenwood, Avon and Columbus. Find the full list at joann.com.
Which Joann locations are closing?
At least eight stores across Iowa, North Carolina, Maryland, Pennsylvania, New York and Massachusetts are closing, according to Retail Dive, local news reports and confirmation provided to USA TODAY.
When are the Joann locations closing?
Joann did not provide information on the date of the impending closings. Local news outlets in Pennsylvania, Iowa, Massachusetts and Delaware reported dates for local store closures ranging from Jan. 12 to Jan. 19. A worker at the Owings Mills, Maryland, location said it would be closing Jan. 19.
Contact IndyStar reporter Cheryl V. Jackson at [email protected] or 317-444-6264. Follow her on X.com:@cherylvjackson or Bluesky: @cherylvjackson.bsky.social.