AS a beloved arts and crafts retailer begins liquidation sales following its second bankruptcy filing, shoppers are racing to stock up on supplies.
Fans are simultaneously panic buying crafts goods and mourning the loss of Joann, which plans to close down all 800 of its stores.
Joann filed for Chapter 11 bankruptcy for the second time in mid-January, announcing late last month that it would shutter all of its locations by the end of May.
The company’s downfall, which has been in business since 1943, left many avid crafters devastated.
When shoppers Kelly Atchison and her mom first heard the news, their first instinct was to panic shop and take advantage of the going-out-of-business sales, they told USA Today.
The pair owns PK Country Designs, a brick-and-mortar shop in Burlingame, Kansas where they sell handmade items.
Several of their popular products, including baby blankets and upholstered benches, are crafted from fabric and supplies from Joann.
The mother-daughter duo stocked up on their favorite fabrics last week from their closest Joann, located 30 miles away in Topeka.
Although there are a Michaels and Hobby Lobby located closer, the pair prefers Joann saying that it offered a better selection.
“It’s going to affect a lot of people, especially where we are in rural America,” said Kelly. “We have to travel quite a ways to go to the stores, and that was one of our last options.”
Others were similarly disappointed by the impending closure of Joann, which represents a spirit of creativity that is becoming harder to grasp, shoppers told USA Today.
They argued that the shut downs would impact communities beyond just craft lovers.
Joann “stirred the imagination” and was accessible to crafters of all ages and skills, retired graphic designer Carol Clemens told the outlet.
“It is how we come together in a creative solidarity. It is a true loss and women across this country are feeling a real sense of mourning. People need to create,” she said.
CRAFTING CHAOS
Joann first filed for bankruptcy in March 2024 following a fading pandemic-era sales boom that left the chain unable to pay off its accumulating debt.
The company was forced to file for bankruptcy again in January, with executives stressing that Joann locations would remain open during the process.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can't repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
Joann, however, reversed its plans and announced last month it would be closing all of its 800 remaining stores after failing to secure a buyer.
The crafts retailer has begun nationwide going-out-of-business sales as a stipulation of the group that won its assets at auction.
“Joann leadership, our Board, advisors and legal partners made every possible effort to pursue a more favorable outcome that would keep the company in business,” the company said.
“We are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on all our stakeholders.
“We deeply appreciate our dedicated Team Members, our customers and communities across the nation for their unwavering support for more than 80 years.”
Other popular chains have similarly faltered in the current retail landscape.
For example, a major fashion retailer is shutting down its headquarters as it prepares to close at least 200 stores and eyes a second bankruptcy filing.
Meanwhile, the Container Store closed another location just weeks after exiting bankruptcy – and insisted that two others were “normal-course.”
GettyJoann has begun liquidation sales at its stores nationwide following its decision to close down all 800 locations[/caption] Read More Details
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