News Summary
Joann is making drastic changes by closing over half of its stores as it faces financial difficulties and a recent Chapter 11 bankruptcy filing. With plans to close 533 out of 800 locations, the crafting community will feel the impact, especially in Texas where several stores are shutting down. The company’s restructuring efforts, aimed at stabilizing operations, come amidst significant debt and a shift to a private entity. Despite the challenges, Joann’s leadership is working towards a future that may find new ways to serve their loyal customers.
Joann’s Tough Times: More Than Half of Stores to Close
In a significant shift for the crafting community, the beloved Joann chain is set to close more than half of its stores across the country. With a recent filing for Chapter 11 bankruptcy, Joann is making some tough decisions to stay afloat amid financial struggles. This is the company’s second bankruptcy filing in less than a year, with the first happening back in March 2024 and the second this January.
Big Changes Ahead
Joann has recently filed a motion in bankruptcy court aiming to close down 533 of its 800 locations. This marks a drastic reduction of almost 63% of its retail footprint. For many crafting enthusiasts, this news is bound to bring a wave of disappointment and questions about where to find their favorite supplies.
Texas Locations Hit Hard
Texas isn’t escaping this wave of closures either. In total, 18 Joann locations in the Lone Star State will be shutting their doors, affecting long-time customers across Texas. Some of the worst-hit spots are North Texas cities including Abilene, Arlington, Austin, Dallas, Denton, Hurst, Houston, and Lewisville.
With Houston boasting the highest number of Joann locations nationwide, featuring a total of four stores in the area, this news could have a significant impact on local crafting communities.
What Led to This Decision?
This decision isn’t just a spontaneous move. Joann has conducted careful evaluations of its store performance and concluded that significant changes are necessary for their future viability. Facing more than $1 billion in debt, the chain had previously secured around $132 million in new financing to help tackle this overwhelming burden.
Restructuring and the Future
After its restructuring efforts, Joann made the difficult decision to delist from the U.S. stock exchange, transitioning to a private entity as part of the bankruptcy agreement finalized in April 2024. This indicates a willingness to adapt and reinvent itself amidst these challenging times.
Impact on the Crafting Community
The closure of these stores marks a sharp decrease in available crafting supplies in many communities. While Joann will still have a presence in Texas—43 stores spread throughout 35 cities—the void left by the closing locations will certainly be felt. And it won’t just be Texas that feels the impact; this closure list will include at least one location in every state except for Hawaii. States like California, Florida, Pennsylvania, Ohio, and Michigan will see the highest number of closures.
What’s Next for Joann?
While the news might feel like a big blow to DIY enthusiasts, Joann’s leadership is putting plans in place for the future. The company is seeking court approval in Delaware to facilitate the sale of “substantially all of its assets”. This move is a strategic step in hopes of stabilizing the business and potentially reviving its brand in the long run.
Final Thoughts
As Joann navigates these tricky waters, local customers and crafters may need to prepare for a changed shopping landscape. Whether it’s turning to online resources or finding new local suppliers, the crafting community is resilient. And while it may be a rough patch for Joann, there’s always hope that this iconic chain can reemerge stronger and more focused on the needs of its loyal customers in the future.
Deeper Dive: News & Info About This Topic
- NBC DFW
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- Google Search: Joann closures
- KHOU
- Encyclopedia Britannica: Joann
- The Hill
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- WFAA
