News Summary
Joann Fabrics has announced the closure of around 500 stores across the U.S., following recent Chapter 11 bankruptcy filings. The only store in Rhode Island, located in Warwick, is among the closures. Going-out-of-business sales have begun, offering significant discounts to clear inventory. The downsizing reflects the company’s struggles with rising operational costs and a decrease in demand for in-store craft supplies as more consumers shift to online shopping.
Rhode Island – Joann Fabrics has announced the closure of approximately 500 of its more than 800 stores across the United States, a significant downsizing that follows two recent Chapter 11 bankruptcy filings. The company’s latest filing was completed just last month, prompting the restructuring process that has now been court-approved. The only Joann store in Rhode Island, located at 1500 Bald Hill Rd. in Warwick, is among those set to close.
As part of this closure strategy, the company initiated going-out-of-business sales starting February 15, 2023. These sales are expected to continue for several months, during which customers can expect discounts generally ranging from 10-20% on various items. Some select Christmas merchandise may see markdowns of up to 75%. The discount strategy aims to clear out existing inventory as the company winds down operations at these locations.
The closures will have a profound impact across all 50 states, with particularly heavy losses expected in California, Florida, Indiana, Michigan, New York, Pennsylvania, and Washington. All Joann locations in Connecticut will close, while only the store in Milford, Massachusetts will remain operational in Southern New England.
The restructuring plan follows Joann’s struggles with rising operational costs and a marked decrease in demand for craft supplies, as many customers opt to purchase these items online instead of in physical stores. This ongoing shift in consumer behavior has pushed the company to reassess its retail footprint in an effort to secure a sustainable future.
In the wake of the bankruptcy filings and store closures, Joann was auctioned off to the GA Group, a retail liquidator. Scott Carpenter, who oversees the Retail Solutions and Wholesale & Industrial Solutions teams at GA Group, has indicated that most stores targeted for closure would continue operations until the end of May, providing customers with some time to take advantage of the ongoing sales.
The decision to close hundreds of stores was a challenging one for Joann’s leadership. The company acknowledged the considerable effects these closures will have on employees, customers, and the broader communities they serve. As part of their transition, Joann has established a restructuring website, joannrestructuring.com, which offers detailed information on the changes taking place, aimed at assisting customers through this process.
Joann Fabrics, a staple in the craft and fabric retail industry, has long provided customers with supplies for a variety of projects ranging from sewing to home decor. However, shifting market dynamics and the challenges of maintaining profitability in a challenging retail environment have compelled the company to reassess its role and operations in the marketplace.
The closures will leave an indelible mark on the communities that have supported Joann over the years, with many losing a beloved source for crafting and DIY supplies. The ongoing sales are expected to attract final customers as the chain aims to conclude its business in a manner that respects its long-standing relationship with shoppers.
As this situation develops, the company remains focused on navigating through its current challenges and aims to emerge with a streamlined operation that can better serve its customers moving forward.
Deeper Dive: News & Info About This Topic
- Providence Journal: Joann Store Closings in Rhode Island
- Providence Journal: Joann Going Out of Business Sales
- Patch: Joann Fabrics Plans to Close Only RI Store
- Patch: Liquidation Sale at RI’s Only Joann Fabrics Store
- Nardolillo Funeral Home: Joann Khamvongsa Obituary
- Google Search: Joann Fabrics Closure News
