Latest news with #MichaelPrendergast
Yahoo
14-02-2025
- Business
- Yahoo
Joann moves to close 500 of its stores across the US amid bankruptcy
NEW YORK (AP) — Struggling fabric and crafts seller Joann plans to close about 500 of its stores across the U.S. — or more than half of its current nationwide footprint. The move, announced Wednesday, arrives amid a tumultuous time for Joann. Last month, the Hudson, Ohio-based retailer filed for Chapter 11 bankruptcy protection for the second time within a year, with the company pointing to issues like sluggish consumer demand and inventory shortages. Joann previously sought Chapter 11 in March 2024 and later emerged as a private company. But after operational challenges continued to pile up, Joann filed for bankruptcy again in January. It's now looking to sell the business — and maintained in a filing Wednesday that closing 'underperforming' locations is necessary to complete that process. "This was a very difficult decision to make, given the major impact we know it will have on our Team Members, our customers and all of the communities we serve," the company said in a statement sent to The Associated Press. '(But) right-sizing our store footprint is a critical part of our efforts to ensure the best path forward.' Joann currently operates around 800 stores across 49 states. The initial list of the roughly 500 locations it's looking to close can be found on the company's restructuring website — spanning states including Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, New York, Pennsylvania, Texas and more. When exactly those closures will take place and how many employees will be impacted has yet to be seen. Joann's Wednesday motion seeks court permission to begin the process. Joann's roots date back to 1943, with a single storefront in Cleveland, Ohio. And the retailer later grew into a national chain. Formerly known as Jo-Ann Fabric and Craft Stores, the company rebranded itself with the shortened 'Joann' name for its 75th anniversary. Both of Joann's bankruptcy filings seen over the last year arrived amid some slowdowns in discretionary spending — notably with consumers taking a step back from at-home crafts, at least relative to the early COVID-19 pandemic boom. Joann has also faced rising competition in the crafts space from rivals like Hobby Lobby, as well as from larger retailers, like Target, who now offer ample art supplies and kits. And, while Joann turned to implementing a new business plan after emerging from bankruptcy last spring, 'unanticipated inventory challenges post-emergence, coupled with the prolonged impact of an excessively sluggish retail economy, put (Joann) back into an untenable debt position,' interim CEO Michael Prendergast noted in a sworn court declaration filed when Joann initiated its latest Chapter 11 proceedings on Jan. 15. Prendergast explained that inventory shortages had significant ripple effects on Joann's core business, particularly when 'in-stock levels eventually dropped by upwards of 10%" and led to a 'new phase of operational distress.' Citing these and other macroeconomic challenges seen in the retail space over recent years, Joann has maintained that a sale of the business is the best path forward. The company says it has a proposed 'stalking horse' bid agreement with Gordon Brothers Retail Partners. Sign in to access your portfolio
The Independent
14-02-2025
- Business
- The Independent
Joann fabrics closing more than 500 stores in 49 states — see the full list of locations
Joann fabrics is closing more than 500 stores in 49 states. On Tuesday, the fabric and craft brand announced it 'filed a motion seeking court authority to begin closing approximately 500 stores' across the U.S. This decision was part of an ongoing Chapter 11 bankruptcy, which Joann filed in January for a second time within a year due to financial issues. The company also noted on its website that right-sizing its 'store footprint is a critical part of efforts to ensure the best path forward for Joaan.' 'This was a very difficult decision to make, given the major impact we know it will have on our Team Members, our customers and all of the communities we serve,' a spokesperson for Joann said in a statement to The Associated Press. 'A careful analysis of store performance and future strategic fit for the Company determined which stores should remain operating as usual at this time.' It's unclear when the stores will close; however, Joann has shared a list of the 533 stores, across every US state except Hawaii, that are expected to shut their doors. You can find the list of all the Joann stores closing here. Joann's roots date back to 1943, with a single storefront in Cleveland, Ohio. And the retailer later grew into a national chain. Formerly known as Jo-Ann Fabric and Craft Stores, the company rebranded itself with the shortened 'Joann' name for its 75th anniversary. Joann's two bankruptcy filings within the last year came amid some slowdowns in discretionary spending — notably with consumers taking a step back from at-home crafts. Joann has also faced rising competition in the crafts space from rivals like Hobby Lobby and larger retailers, like Target, who now offer ample art supplies and kits. While Joann turned to implementing a new business plan after emerging from bankruptcy last spring, 'unanticipated inventory challenges emerged, coupled with the prolonged impact of an excessively sluggish retail economy.' This put Joann 'back into an untenable debt position,' interim CEO Michael Prendergast noted in a sworn court declaration, filed when Joann initiated its latest Chapter 11 proceedings in January. Prendergast explained that inventory shortages had significant ripple effects on Joann's core business, particularly when 'in-stock levels eventually dropped by upwards of 10 percent" and led to a 'new phase of operational distress.' Joann isn't the first brand to announce a slew of store closures. On Wednesday, JCPenney, which filed for Chapter 11 bankruptcy in 2020, revealed it was preparing to close multiple stores in eight states. However, the company said the move is 'unrelated to' its recent merger with the SPARC Group, which helped form Catalyst Brands, an organization of six major retailers. 'While we do not have plans to significantly reduce our store count, we expect a handful of JCPenney stores to close by mid-year,' a spokesperson for JCPenney said. 'The decision to close a store is never an easy one, but isolated closures do happen from time to time due to expiring lease agreements, market changes, or other factors. We are grateful to our dedicated associates and the loyal customers who have shopped at these locations.' In December, Party City also confirmed it was closing down all of its stores in the U.S. after 40 years of business. CEO Barry Litwin held a meeting on December 11 with staff to announce the news, notifying them that it would be their last day of employment. Store closures are expected to continue in 2025, according to a report published by Coresight Research in January. Coresight Research expects store closures to go up to approximately 15,000 in 2025. In 2024, US store closures totaled 7,325, which is the highest it's been since 2020 when there were nearly 10,000 closures.
USA Today
14-02-2025
- Business
- USA Today
Joann files for bankruptcy, again: How did the retailer get to this point?
Joann files for bankruptcy, again: How did the retailer get to this point? Show Caption Hide Caption Joann plans to close 500 locations, stop accepting gift cards and returns Crafts store Joann has asked a judge to allow it to begin liquidation sales and give customers a short window to use gift cards and return items. (Scripps News) Scripps News Joann, the retailer known for selling fabrics and crafts for the last 82 years, has filed for bankruptcy and says it is preparing to close more than half of its U.S. locations. The retailer told USA TODAY in a statement Wednesday that it would be closing "approximately 500" of its roughly 850 locations across the U.S. The news comes after the company filed for bankruptcy for the second time in less than a year, after initially filing and then going private in March 2024. The Ohio-based retailer filed for a second bankruptcy in January and said it did so to "facilitate a sale process to maximize the value of its business." "Since becoming a private company in April, the Board and management team have continued to execute on top-and bottom-line initiatives to manage costs and drive value,' Michael Prendergast, interim CEO of Joann, said. Here's a timeline of the Joann bankruptcy. Who owns Joann? Joann was founded in 1943 and sells a variety of crafting supplies including fabric by the yard, sewing machines, Cricut machines, yarn, home decor and more. The company went private in 2011 when it was acquired by the equity firm Leonard Green & Partners for about $1.6 billion. In 2021, Joann, still majority-owned by Leonard Green & Partners, went public at an initial $12 a share. Joann became a private company again in April following its initial bankruptcy filing, so its shares were no longer listed by the Nasdaq or any other national stock exchange. 2024: Joann files for bankruptcy The first time Joann filed for Chapter 11 bankruptcy protection was in March 2024. In a statement, the Ohio-based retailer said it had secured approximately $132 million in new financing and "related financial accommodations." At the time, it expected to reduce its funded debt by about $500 million, or half of its $1 billion total debt. At the time of the filing, the company said no disruptions would be seen to its customers, vendors, landlords and other trade creditors. Scott Sekella, Joann's chief financial officer and co-lead of the interim office of the CEO said at the time that 95% of Joann's stores were cash flow positive. Sekella has since resigned from the company before being announced as the new CFO of Victoria's Secret. Joann store closures earlier this year In early 2025, rumblings of ever-increasing trouble began appearing at Joann as store closures were slated to begin, according to industry and local reports. In a statement to Retail Dive in January, Joann's director of corporate communications Amanda Hayes said the locations were being closed "as part of routine store location evaluation and optimization" and were not a major shuttering event. "We also opened new and remodeled locations in recent months, including new stores in Great Falls, MT and Maplewood, MN," she said. Local news outlets in Pennsylvania, Iowa, Massachusetts and Delaware reported dates for local store closures ranging from Jan. 12-19. A worker at a Owings Mills, Maryland location said it would close on Jan. 19. Then, bankruptcy again for Joann Weeks after the trickle of store closures, Joann announced it would be filing again for bankruptcy. '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,' Prendergast said in a statement on Wednesday. However, despite the gloomy news for customers and workers, Joann said its stores and website are "open in the ordinary course and continue to serve customers." Joann closing 500 stores On Wednesday, Joann said it would be closing "approximately 500" of its about 850 locations in the U.S. In a statement to USA TODAY, the company said it is looking to "right-size its store footprint." "This was a very difficult decision to make, given the major impact we know it will have on our Team Members, our customers and all of the communities we serve," Joann's statement said. "A careful analysis of store performance and future strategic fit for the Company determined which stores should remain operating as usual at this time." Contributing: Mary Walrath-Holdridge, Emily DeLetter, Jonathan Limehouse Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Reach him at and follow him on X @fern_cerv_.
Chicago Tribune
13-02-2025
- Business
- Chicago Tribune
Joann to close stores across the country, including 26 in Illinois, amid bankruptcy
NEW YORK (AP) — Struggling fabric and crafts seller Joann plans to close about 500 of its stores across the U.S. — or more than half of its current nationwide footprint. Twenty-six of those stores are in Illinois. Joann locations in Wheaton, Naperville, Vernon Hills, Orland Park, Arlington Heights and Joliet are all slated to close. Two stores in the city of Chicago — at 2639 N. Elston Ave. and 555 W. Roosevelt Road — will also close, according to information provided by the retailer. The move, announced Wednesday, arrives amid a tumultuous time for Joann. Last month, the Hudson, Ohio-based retailer filed for Chapter 11 bankruptcy protection for the second time within a year, with the company pointing to issues like sluggish consumer demand and inventory shortages. Joann previously sought Chapter 11 in March 2024 and later emerged as a private company. But after operational challenges continued to pile up, Joann filed for bankruptcy again in January. It's now looking to sell the business — and maintained in a filing Wednesday that closing 'underperforming' locations is necessary to complete that process. 'This was a very difficult decision to make, given the major impact we know it will have on our Team Members, our customers and all of the communities we serve,' the company said in a statement sent to The Associated Press. '(But) right-sizing our store footprint is a critical part of our efforts to ensure the best path forward.' Joann currently operates around 800 stores across 49 states. The initial list of the roughly 500 locations it's looking to close can be found on the company's restructuring website — spanning states including Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, New York, Pennsylvania, Texas and more. When exactly those closures will take place and how many employees will be impacted has yet to be seen. Joann's Wednesday motion seeks court permission to begin the process. Joann's roots date back to 1943, with a single storefront in Cleveland, Ohio. And the retailer later grew into a national chain. Formerly known as Jo-Ann Fabric and Craft Stores, the company rebranded itself with the shortened 'Joann' name for its 75th anniversary. Both of Joann's bankruptcy filings seen over the last year arrived amid some slowdowns in discretionary spending — notably with consumers taking a step back from at-home crafts, at least relative to the early COVID-19 pandemic boom. Joann has also faced rising competition in the crafts space from rivals like Hobby Lobby, as well as from larger retailers, like Target, who now offer ample art supplies and kits. And, while Joann turned to implementing a new business plan after emerging from bankruptcy last spring, 'unanticipated inventory challenges post-emergence, coupled with the prolonged impact of an excessively sluggish retail economy, put (Joann) back into an untenable debt position,' interim CEO Michael Prendergast noted in a sworn court declaration filed when Joann initiated its latest Chapter 11 proceedings on Jan. 15. Prendergast explained that inventory shortages had significant ripple effects on Joann's core business, particularly when 'in-stock levels eventually dropped by upwards of 10%' and led to a 'new phase of operational distress.' Citing these and other macroeconomic challenges seen in the retail space over recent years, Joann has maintained that a sale of the business is the best path forward. The company says it has a proposed 'stalking horse' bid agreement with Gordon Brothers Retail Partners.
Los Angeles Times
13-02-2025
- Business
- Los Angeles Times
Joann plans to close roughly half its stores after bankruptcy filing
After filing for bankruptcy protection twice in less than a year, the crafts and fabric retailer Joann is moving to close around 500 stores across the country, including nearly 60 in California. Joann announced Wednesday that it is seeking the go-ahead from a bankruptcy judge to carry out the closures as part of an ongoing Chapter 11 process. The textile supplier declared bankruptcy in January and sought approval to sell assets while stores remained open. The chain's footprint will be nearly cut in half by the closures, which will shutter locations in Huntington Beach, Glendale and Oxnard, among many others. 'This was a very difficult decision to make, given the major impact we know it will have on our team members, our customers and all of the communities we serve,' a Joann spokesperson said in a statement. 'Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann,' they said. The company selected locations for closure after an analysis of store performance and strategic fit, the statement said. Stores will close in nearly all 50 states. Joann did not release information on the number of employees that could be affected. The Hudson, Ohio-based retailer emerged from a previous Chapter 11 bankruptcy in April 2024 after eliminating $505 million in debt. When it filed for the second time, the company said it had $615 million in liabilities and owed $133 million to suppliers. After going public in 2021, the company was delisted from the NASDAQ in 2024 as part of its first bankruptcy. Joann has faced inventory shortages stemming from inconsistent deliveries of yarn and sewing supplies, according to court documents, leading to understocked shelves. Suppliers also discontinued some items popular among customers, the company said. The chain is under pressure from inflation-wary consumers who have been pulling back on discretionary spending, which tends to include hobby-based goods like what Joann offers. It's further squeezed by competition from others in the space, including Etsy, Michael's and Hobby Lobby, as well as big-box and online retailers such as Amazon 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,' said Joann interim Chief Executive Michael Prendergast in a statement after the January Chapter 11 filing. Joann is not alone in its retail woes. The department store chain JCPenney has plans to close eight stores by midyear, including one in San Bruno, Calif., the company said in a statement to The Times this week. The chain closed around 200 stores after filing for Chapter 11 bankruptcy protection in 2020 and has since emerged from bankruptcy. The party supply retailer Party City abruptly shut down operations in December after 40 years in business, laying off its employees and closing all locations, including several in Los Angeles. Big Lots, Kohl's and Macy's are also currently holding liquidation sales.
