Fabric and craft chain Joann Fabric announced Wednesday it plans to close approximately 500 locations in 49 states, nearly half its fleet of stores.
The chain has been rocked by financial instability within the past year and announced last month that it had voluntarily entered into Chapter 11 proceedings in U.S. Bankruptcy Court. This is the second bankruptcy filing for the company in less than a year, according to USA Today. Prior to filing, the company moved to private status in April 2024.
“Since becoming a private company in April, the Board and management team have continued to execute on top and bottom-line initiatives to manage costs and drive value,” said Michael Prendergast, Joann’s interim CEO, in a statement. “However, the last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step. After carefully reviewing all available strategic paths, we have determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business. We hope that this process enables us to find a path that would allow JOANN to continue operating as a going concern.”
In a statement to USA Today Feb. 12, the company said it was looking to “right-size its footprint.” Among the closures, six Iowa stores are on the chopping block, located in the following cities:
- Ames
- Ankeny
- Council Bluffs
- Iowa City
- Muscatine
- Mason City
A bidding procedure hearing is scheduled for Feb. 14 at 9:30 a.m. in the U.S. Bankruptcy Court for the District of Delaware, with Gordon Brothers Retail Partners, LLC listed as the “stalking horse bidder.” The Boston-based investment firm purchased Big Lots late last month when the company filed for bankruptcy.
