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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_.
Yahoo
13-02-2025
- Business
- Yahoo
Joann Fabric stores to close 10 of 13 Tennessee locations. Here's which ones and where
Several Joann Fabric stores in Tennessee are closing after the company asked a court to shutter about 500 stores across the country in the wake of a January bankruptcy filing. The stores targeted for closure include 10 in Tennessee and were decided upon after "careful analysis of store performance," the company said. There are 13 stores currently operating in the Volunteer State, according to records. Locations in Chattanooga, Madison and Murfreesboro were not listed among the closings. The chain has about 850 stores in 49 states, according to the company's website. '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 Wednesday statement. In addition to store performance, "future strategic fit for the Company determined which stores should remain operating as usual at this time. Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for JOANN.' Clarksville: 2831 Wilma Rudolph Road Jackson: 1185 Vann Drive Johnson City: 108 Johnson City Plaza Drive Kingsport: 1409 East Stone Drive Knoxville: 4627 Greenway Drive Germantown: 3150 Village Shops Drive Franklin: 2000 Mallory Lane Suite 270 Mt. Juliet: 401 S Mount Juliet Road Suite 640 Sevierville: 208 Collier Drive Tullahoma: 1600 Jackson St. Northgate Mall Joann Fabric stores' decision to close locations comes in the wake of chains Big Lots, Part Central and Bargain Hunt announcing store closures. Last March, the company filed for Chapter 11 bankruptcy protection. After finishing the bankruptcy process, then-CEO Scott Sekella said about 95% of the operating 815 stores turned a profit. The company, during that process, went private, meaning stocks were no longer traded. It filed for bankruptcy a second time in January with a handful of stores closed after the announcement as part of the company's routine evaluation process, not its major closing plan. Reporters Bonnie Bolden, Patrick Williams, Mary Walrath-Holdridge, Emily DeLetter and Jonathan Limehouse contributed to this story. Reach reporter Craig Shoup by email at cshoup@ and on X @Craig_Shoup. To support his work, sign up for a digital subscription to This article originally appeared on Nashville Tennessean: Joann Fabric to close 10 of 13 Tennessee stores. Here's where
Yahoo
29-01-2025
- Business
- Yahoo
Victoria's Secret shares sink 10% on CFO transition, narrowed Q4 guidance
-- Victoria's Secret&Co (NYSE:VSCO) updated its fourth-quarter forecast on Wednesday and appointed Scott Sekella as the new Chief Financial Officer (CFO) following Timothy Johnson's decision to retire in June 2025. Sekella previously held the CFO position at Joann, a fabric and crafts retailer. This appointment follows the earlier naming of Hillary Super as the new CEO in October. The company's shares plunged nearly 10% after the market opening bell. The move comes amid a turnaround phase for Victoria's Secret. Alongside the leadership change, the company has updated its fourth-quarter guidance, raising the lower end of its net sales, adjusted operating income, and adjusted earnings per share (EPS) expectations. Despite the current macroeconomic headwinds that may affect short-term top-line trends, Jefferies analysts maintain a positive outlook on VSCO's long-term potential. 'While we do not expect a linear recovery, we believe that VSCO's long-term opportunity remains unchanged and that the company is capable of restoring lost sales while recapturing margin,' analysts led by Corey Tarlowe said in a note. As such, the firm's analysts have left their estimates largely unchanged, positioning them at the high end of the company's updated guidance. Since Super's arrival, VSCO has seen positive signs such as increased foot traffic in October and November, a significant boost in social media engagement, and a slight uptick in web traffic in December. 'Looking ahead, we believe that the company is well-positioned to continue witnessing healthy data trends,' Jefferies analysts concluded. Following the guidance update, Victoria's Secret now expects its fourth-quarter adjusted operating income to be between $260 million and $270 million, compared to its previous range of $240 million to $270 million. Analysts surveyed by Bloomberg had estimated $266.5 million. The company projects net sales growth of 3% to 4% and revised its adjusted EPS forecast to $2.20 to $2.30, up from the prior range of $2.00 to $2.30. The consensus estimate stood at $2.27. Related Articles Victoria's Secret shares sink 10% on CFO transition, narrowed Q4 guidance JPM bullish on puts stock in positive catalyst watch on U.S. demand Riot Platforms jumps as hedge fund DE Shaw takes stake Sign in to access your portfolio
