max.bowen@northstarreporter.com
Following its filing for Chapter 11 bankruptcy proceedings earlier this year, the nationwide craft business JOANN Fabric has announced the closure of 500 stores nationwide, including the one in North Attleborough.
“As part of the ongoing Chapter 11 process and our efforts to maximize the value of the business, JOANN has filed a motion seeking court authority to begin closing approximately 500 stores across the nation,” the company said in a statement. “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 careful analysis of store performance and 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.”
The company announced it would enter Chapter 11 bankruptcy proceedings on Jan. 15, citing challenges in the retail industry.
“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,” said Michael Prendergast, interim chief executive officer of JOANN in a statement. “However, 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. After carefully reviewing all available strategic paths, we have determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business. We hope that this process enables us to find a path that would allow JOANN to continue operating as a going concern.”
Other JOANN locations in Massachusetts which are slated to close include the ones in Seekonk, Hadley, Ludlow, North Dartmouth and North Billerica.
JOANN has been in business for the last 80 years, with over 800 stores in 49 states, along with its e-commerce business.
