A national fabrics and crafts retailer is filing for bankruptcy for the second time within a year.
Joann filed for Chapter 11 again on Wednesday, according to CNN, citing struggling sales and “acute and unexpected” inventory issues. The company said an “unexpected ramp-down, and, in some cases, the entire cessation of production” of important items also put its $615 million debt in an “untenable position.”
Joann had previously filed for bankruptcy in March 2024 and emerged a month later after securing new financing without closing stores at the time.
However, USA Today reports the chain is now starting to close stores due to its financial struggles. At least eight locations are closing, including one Central New York location at 2309 N. Triphammer Rd in the village of Lansing; the Ithaca-area Cayuga Shopping Center store reportedly shut its doors on Jan. 11.
Joann fabrics, as it’s colloquially known, still has more than 800 stores operating, including in Clay, Cortland, Fayetteville, New Hartford, and more than 25 other New York state locations. Other stores closing or closed are reportedly in Iowa, North Carolina, Maryland, Pennsylvania, and Massachusetts.
The Associated Press reported last year that craft sales did well during the pandemic, but fell into declines in recent years amid competition from lower-priced rivals like Hobby Lobby, Target and Walmart.
The “last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step,” interim CEO Michael Prendergast said in a press release. “We remain committed to continuing to support them and serving our customers – the sewists, quilters, crocheters, crafters and other creative enthusiasts we have served for more than 80 years – during the process.”
According to CNN, Joann is seeking a sale of nearly all of its assets. Gordon Brothers Retail Partners, which recently bought a portion of Big Lots in bankruptcy, is currently the leading bidder at an undisclosed price.
John Bringardner, head of research firm Debtwire, told CNN that it was a mistake for Joann to not close stores during its first bankruptcy. If it doesn’t find a higher bidder in a bankruptcy auction, the retailer may be forced to hold going out of business sales and close more, if not all, its remaining locations.
National Retailer XYZ Files for Bankruptcy Again, Closes Central NY Store
It’s a sad day for shoppers in Central New York as national retailer XYZ has announced that they will be filing for bankruptcy once again. This news comes as a blow to many loyal customers who have frequented the store for years.
As part of their restructuring efforts, XYZ has made the difficult decision to close their Central NY location. This means that customers will no longer be able to shop at this beloved store and will have to find alternative options for their shopping needs.
While this news is certainly disappointing, it is not entirely unexpected. XYZ has been struggling financially for some time now, and this latest bankruptcy filing is just the latest in a series of setbacks for the once-thriving retailer.
Despite this setback, XYZ remains hopeful that they will be able to emerge from bankruptcy stronger and more resilient than ever. In the meantime, loyal customers in Central NY will have to find other places to shop for their favorite products.
As we say goodbye to XYZ in Central NY, let’s remember the good times we had shopping there and look forward to what the future holds for this iconic retailer.
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