Another one bites the dust as Joann Craft Store looks to close 500 of its stores after yet again filing for bankruptcy.
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Joann has filed for bankruptcy twice within a year at this point. After the initial cry for help, they reemerged as a private company. However, it appears the measures put in place to increase sales and profit have failed.
Now, they have regrettably resorted to closing a vast number of Joann stores across the US in a last-ditch effort to save the brand. At present, there are around 800 stores still operational in the US, but 500 of these are set to close.
This will result in a vast amount of jobs lost, from both the top and bottom of the food chain. In a statement released by Joann on their impending bankruptcy, they said "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. Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward."
A Long History In Craft Sales Will Be Lost With Joann Bankruptcy
Although not everyone will use somewhere like a craft store, for many they are a valuable resource. Places like this retailer have been a part of the US high street for a long time, used by generations. Joann in particular has been open since 1943.
Closures of retail stores like Joann are, in part, a result of economic hardships after the pandemic. During this time, many stores struggled to make sales. In some cases, these never picked back up. On top of this came the vast loans without considering the repayment consequences.
The retail landscape is changing, and a place like Joann has simply not managed to keep up. More people are buying online and importing from cheaper countries. Alongside online retail comes the competition from places like Target, which has also recently started selling hobby and craft goods.
Target can absorb losses in a single area of retail, cushioning it with other departments. However, somewhere like Joann is forced into bankruptcy as soon as interest dips.
The full list of the Joann stores that are set to close can be found on their website.
