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 particularly hard.
In their latest bankruptcy filing last month reported by CNN , Joann cited issues with inventory that were both unexpected and severe. Court documents revealed that the company had experienced production slowdowns or complete halts for some crucial products.
The company also stated that they were actively seeking a buyer at this time. However new court filings have shown that during this process of finding a potential buyer and conducting due diligence on bids received thus far; it has been determined by Joann’s advisors there are certain underperforming stores which are unlikely to be included in any going concern bid.
Overall projections indicate over 15k store closures expected throughout America this year alone according to Coresight Research data cited by CNN .
