Joann Fabric and Crafts announces nationwide closure after filing for bankruptcy, sparking conversations about local business opportunities.
Joann Fabric and Crafts, a retail chain with a long-standing presence of 80 years in the crafting industry, has announced its decision to shut down all stores following its filing for bankruptcy. The company will be liquidating its inventory through a series of going-out-of-business sales, affecting locations nationwide.
In an official statement, a spokesperson for Joann articulated the decision and the process moving forward. “Following a comprehensive sale process and auction, GA Group, together with the Prepetition Term Loan Agent, has been selected as the winning bidder to acquire substantially all of JOANN’s assets,” the spokesperson stated. This transition will involve winding down the company’s operations, contingent upon Bankruptcy Court approval of the transaction.
Joann’s leadership expressed their commitment to working with the winning bidder to ensure a smooth process that aims to minimize the impact on employees and stakeholders. They conveyed their deep appreciation for the loyalty and support received from Team Members, customers, and communities over the years.
In Bozeman, local seamstress and owner of Revivall, Laura Fisher, remarked on her shock regarding the closure of Joann stores. “My immediate reaction is shock and disbelief because they have been the go-to fabric shop since I don’t even know how long,” she said. Fisher believes this development may open the door for local businesses to flourish. “I think this could be a great opportunity for us to start supporting our local businesses and less than the box stores when it comes to sewing,” she stated.
Fisher is also conscious of the environmental implications associated with textiles. “As much as I love fabric, I am also aware of the impacts it has on the environment, so I buy all of my fabric deadstock, which is leftovers from the industry,” she commented. In her role as a 4-H sewing leader for three years, she noted the appeal Joann had with its coupons and discounts, which contributed to its popularity among customers. However, she acknowledged the sustainability challenges that the company’s business model faced, remarking, “that’s clearly not sustainable if we just watched them declare bankruptcy and go out of business.”
Despite the impending closure of Joann stores, Fisher highlighted a network of local fabric businesses that could benefit from increased patronage. “I think it is important for people to know as we start supporting other shops that you are going to be paying a little more but also your quality of fabric, which then turns into the quality of your garment or your quilt, whatever you are working on will also be able to last longer,” she explained.
As Joann Fabric and Crafts prepares to wind down its operations, communities may see shifting dynamics in the retail fabric landscape, as local businesses potentially fill the gap left by the chain’s departure.
Source: Noah Wire Services
