Joanne, a leading craft retailer, plans to close hundreds of locations
CoreSight Research estimates there will be another wave of retail closures in 2025 as legacy companies face relentless competition.
Joann Inc. submitted Chapter 11 Bankruptcy Protection It plans to close hundreds of stores in January to try to make the footprint right-sized.
The retailer filed a motion this week seeking court powers to begin closing 500 stores nationwide as they proceed through the Chapter 11 process. If approved, the company said that out-of-business sales could begin at stores affected on Saturday and continue for the next few months.
A company spokesman told Fox Business that closures are part of the company’s strategy to maximize the value of its business.
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“A careful analysis of store performance and future strategic fits has determined which stores will continue to operate as normal. Our store footprint is to ensure Joanne’s best path. It’s an important part of our efforts,” the spokesman said.
In March 2024, when the company first applied for Chapter 11 in its 81 business, it became a private company, but it did not close more than 800 locations in 49 states.
Customers will enter the Joann Store in El Cerrito, California on January 8, 2025. JoannInc. (Getty Images/David Paul Morris via Getty Images/Bloomberg)
In January, the company filed for bankruptcy protection with the US Bankruptcy Court in the Delaware area, and after competing with a rewarding retail environment, it hopes to sell to another company, coupled with sales and constrained inventory levels. Masu.
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“After carefully considering all available strategic paths, we have determined that starting a court-teached sales process is the best action to maximize the value of the business. “We did,” interim CEO Michael Prendergast said when the company filed for the second time. “I hope this process will help you find the paths you want to allow. Joan continues to operate As a continuing concern. ”
As the retailer proceeded through the Chapter 11 process, he filed an appeal seeking court powers to begin closing 500 stores across the country. (Read Eagle via Tim Leedy/Medianews Group/Getty Images/Getty Images)
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The company last month sought court approval to begin the process of selling virtually all of its assets to Gordon Brothers Retail Partners LLC. Gordon will serve as a “stalking horse” bidder. This is often a party that agrees to make an initial bid on the assets of a bankrupt company before the formal auction process begins.
Gordon Brothers, who continues to actively solicit alternative bids, suggests they are pursuing company liquidation and intending to do out-of-business sales at all store locations.
It said it received inquiries from parties that may be interested in continuing to operate stores and online businesses on a continuous basis.
If other eligible bids are submitted during the court supervision sales process, Joanne will have a stalker horse bid set up the floor and auction or auction For auction process.
These are the shops that close in each state: