Scoop: Joann Plans to Shut Down Over 500 Stores Nationwide
Retail giant Joann set to shut down over 500 stores nationwide
Hey there, folks! Guess who's facing some serious trouble in retail land? Joann, the beloved crafts and sewing retailer, has hit a rough patch and is seeking court approval to shutter more than half of its locations!
It's been barely a month since Joann filed for Chapter 11 bankruptcy, and now they're aiming to close over 500 stores. You heard it right! A court hearing's scheduled for this Friday in Delaware bankruptcy court to discuss this drastic move.
If everything goes as planned, Joann will kick off going-out-of-business sales on Saturday itself, as per their statements to both vendors and customers. But hang on tight—if the company doesn't bag a suitable buyer at auction, it might say goodbye for good! The company is already pursuing a sale, but the stalking horse bidder, Gordon Brothers, intends to liquidate the entire company if they win the auction.
So, what's the deal with Joann? After seeking bankruptcy protection twice in less than a year, it seems like this retail giant might vanish from the scene. Even if Gordon Brothers don't seal the deal, Joann will still be left with less than half of its footprint—the stores that haven't managed to attract any going concern bids during the bankruptcy process.
"This was a gut-wrenching decision, given the major ramifications we know it'll have on our team, our customers, and the communities we serve," said Joann in a statement to Retail Dive. They plans to right-size their store footprint by closing the underperforming stores, a critical step for Joann's future.
As for the number of employees affected, the company's keeping tight-lipped. But they're hoping to leverage the upcoming holiday weekend to drive a strong response for going-out-of-business sales—after all, holidays are usually associated with increased revenue for retailers, and Joann's not planning to miss out on that opportunity!
Joann previously used its bankruptcy to shed about $505 million in debt. After coming out of Chapter 11 as a privately held company weeks later, it employed about 19,000 people and had approximately 800 stores spread across 49 states in January.
But, as they say, in the world of retail, things can change in a heartbeat. Keep an eye on the news for updates on Joann! 👩🎤📢📝
- The impending closure of over 500 Joann stores highlights a potential trend of economic downturn in the retail industry.
- In a competitive business landscape,ai and technology could possibly play a significant role in reshaping the retail sector, potentially saving companies like Joann.
- The bailout of Joann might involve law firms and financial institutions to ensure the fair distribution of assets during the auction process and maintain the integrity of the industry.
- If Joann fails to find a suitable buyer, the law will determine the rights of employees, vendors, and customers according to bankruptcy regulations, demonstrating the importance of legal measures in economic crises.
