Are Joann stores closing? Bankruptcy and stock delisting come for the fabrics giant
Joann Inc, the owner of the Joann chain of sewing and fabric stores, is filing for Chapter 11 bankruptcy, the company has announced. The move comes after the chain has struggled with declining sales in recent years. As a result of its changing financial situation, Joann stock will also be delisted from the Nasdaq. The company was founded in Cleveland in 1943 and currently has 829 stores in 49 states. The good news for both customers and employees is that it doesn’t appear that any Joann locations will immediately close as part of the bankruptcy procedures. “The financial restructuring contemplated by the TSA [transaction support agreement] will be implemented through a prepackaged court-supervised process in which Joann will continue to operate in the ordinary course of business,” the company’s press release states. “Joann’s stores and the Joann.com website will remain open and continue operating as normal and customers, vendors, landlords, and other trade creditors will not see any disruption in services.” Scott Sekella, Joann’s chief financial officer, also revealed that 95% of the company’s stores “are cash-flow positive” and said that the company is committed to continuing “to operate as usual” during the court-supervised procedure. Reached for comment by Fast Company about potential store closures, Joann referred us to its FAQ page, which states that, “Any changes to the store fleet, including closures, remodels, and new openings, are part of our normal course of business.” However, as a result of the bankruptcy proceedings and Joann’s restructuring, the company says it expects to become privately held. Currently, Joann stock is publicly traded on the Nasdaq under the ticker symbol, JOAN. As of the time of this writing, JOAN shares were up 23% in premarket trading on the news to $0.2836 per share. The company went public on the Nasdaq in March 2021 and by the end of May 2021, it was trading at nearly $17 per share. Joann expects to complete the Chapter 11 bankruptcy process by as early as the end of this April. This post has been updated with Joann’s response.
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Joann Inc, the owner of the Joann chain of sewing and fabric stores, is filing for Chapter 11 bankruptcy, the company has announced. The move comes after the chain has struggled with declining sales in recent years. As a result of its changing financial situation, Joann stock will also be delisted from the Nasdaq.
The company was founded in Cleveland in 1943 and currently has 829 stores in 49 states. The good news for both customers and employees is that it doesn’t appear that any Joann locations will immediately close as part of the bankruptcy procedures.
“The financial restructuring contemplated by the TSA [transaction support agreement] will be implemented through a prepackaged court-supervised process in which Joann will continue to operate in the ordinary course of business,” the company’s press release states. “Joann’s stores and the Joann.com website will remain open and continue operating as normal and customers, vendors, landlords, and other trade creditors will not see any disruption in services.”
Scott Sekella, Joann’s chief financial officer, also revealed that 95% of the company’s stores “are cash-flow positive” and said that the company is committed to continuing “to operate as usual” during the court-supervised procedure.
Reached for comment by Fast Company about potential store closures, Joann referred us to its FAQ page, which states that, “Any changes to the store fleet, including closures, remodels, and new openings, are part of our normal course of business.”
However, as a result of the bankruptcy proceedings and Joann’s restructuring, the company says it expects to become privately held. Currently, Joann stock is publicly traded on the Nasdaq under the ticker symbol, JOAN. As of the time of this writing, JOAN shares were up 23% in premarket trading on the news to $0.2836 per share. The company went public on the Nasdaq in March 2021 and by the end of May 2021, it was trading at nearly $17 per share.
Joann expects to complete the Chapter 11 bankruptcy process by as early as the end of this April.
This post has been updated with Joann’s response.
