Craft retailer Joanne is planning to go bankrupt and close all of his stores after failing to find a buyer willing to maintain some of the 82-year-old company's 800 US retailers.
The company said on Sunday that it plans to sell all its assets to lenders and buyer groups, including the company known as the GA Group. Joanne wanted buyers who kept their business alive, but added that the highest bidders plan to start selling out of business in all stores.
Joanne will seek approval for the sale at a bankruptcy court hearing on Wednesday in Wilmington, Dell.
Founded in 1943, the Ohio-based company said it had made every effort to stay in business. Joan will continue to accept customer gift cards until February 28th, attempting to minimize disruptions for employees, customers and vendors when they close stores in the coming weeks.
Joanne filed for bankruptcy for the second time in January in less than a year, mainly due to supply chain disruptions. We managed to keep all our stores open during the 2024 bankruptcy restructuring, which eliminated our $505 million in debt.
Suppliers have eliminated some of the products Joan relies on, but delivery of thread and sewing items has become unpredictable, limiting their ability to act as a one-stop shop for craft and hobby projects .
According to filings, in January, Joan had 800 stores with $538.3 million in stock and 19,000 employees in 49 states. It has $615.7 million in debt, over $133 million to its suppliers, and stores spend $26 million per month on renting.
