JoAnn Fabric Files for Bankruptcy, 22 Stores in Massachusetts
JoAnn Fabric, with 22 locations in Massachusetts, has filed for bankruptcy, securing $132 million in fresh funding to reduce its $1 billion debt. The 81-year-old chain saw a brief surge in sales during the early days of COVID, but has been on a steady decline for years. Despite the bankruptcy, its 850 stores and website will remain open for business.
Uncertain Future for Joann Fabrics and Crafts Stores
The future of Joann Fabrics and Crafts stores in Schererville, Hobart, and Michigan City is uncertain as the retail chain considers filing for bankruptcy. The company hopes to reorganize and secure additional capital, but this could entail the closure of underperforming stores. Joann Fabrics currently carries a debt of $976 million and suffered a $200 million loss in the previous year, with net sales declining by 8.3% to $2.2 billion. The traditional brick-and-mortar retail sector has faced significant challenges due to the growing dominance of e-commerce, consumer spending cutbacks influenced by inflation, and surging credit card debt.