According to recent reports, Joann, a retailer specializing in fabrics and crafts, is set to close 500 of its 800 stores in the near future as it undergoes its second Chapter 11 bankruptcy. The closures will affect all states across the country, with California, Florida, Indiana, Michigan,
New York,Pennsylvania and Washington being hit hardest.
Joann’s second bankruptcy filing last month cited unexpected inventory issues as the main reason for these closures. Court documents revealed that production of critical products had been significantly reduced or even stopped altogether.
The company also stated that it was actively seeking a buyer during this time. However,newly filed court documents show that some underperforming stores are unlikely to be included in any potential bids from buyers.
This news comes amidst a larger trend of store closures across the U.S., with over 15
thousand projected to close this year alone according to data from Coresight Research.
Overall,the bankruptcies at Joann highlight ongoing challenges within the retail industry and serve as another reminder of how businesses must adapt and evolve in order survive.
