Joann fabrics and crafts emerges from bankruptcy, with NJ stores to stay open

Daniel Munoz, NorthJersey.com

Joann — one of the nation’s largest sellers of fabrics and craft supplies — will emerge from its bankruptcy proceeding with its more than 800 U.S. stores intact, including 11 in New Jersey

The Hudson, Ohio-based company filed for Chapter 11 bankruptcy protections last month in the U.S. Bankruptcy Court for the District of Delaware, as it struggled with a decline after the COVID-19 craft boom.

On Thursday, the Delaware federal court approved its reorganization plan, which calls for its stores to stay open and the company to become privately owned by its creditors.

The Joann Fabric and Crafts sign is pictured Thursday, May 11, 2023, in the State Street Market shopping center in Rockford.
The Joann Fabric and Crafts sign is pictured Thursday, May 11, 2023, in the State Street Market shopping center in Rockford.

“Joann will move forward with a strengthened financial foundation,” said Chris DiTullio, the company’s chief customer officer.

When it filed for bankruptcy, Joann agreed to reduce its debt load and receive $132 million in new funding. According to business publication CoStar, the company slashed its roughly $1.1 billion debt by nearly $505 million.

Joann saw its business boom during the COVID-19 pandemic, as Americans used the extra time amid stay-at-home orders and the extra money from stimulus payments to delve into crafts.

But the “number of people engaging in crafts and making has declined over the past few years,” and the company in turn “struggled to turn a profit and was in desperate need of recapitalization,” said retail analyst Neil Saunders.

“Weakening store standards and declining customer service levels — partly because of staffing cuts — have made stores less desirable,” Saunders said.

Shoppers turned to cheaper alternatives such as Hobby Lobby, or found it easier to shop online, he said.

Joann is not alone experiencing post-pandemic woes. Earlier this week, office fashion retailer Express said it was filing for bankruptcy and closing nearly 100 locations, including seven in New Jersey.

Last year, Bed Bath & Beyond and Christmas Tree Shops filed for bankruptcy and closed stores across the nation, including in New Jersey.

Joann locations in New Jersey

These are Joann’s New Jersey locations:

  • 2234 West Marlton Pike Road, Cherry Hill

  • 1272 Route 27, Colonia

  • 1120 Hurffville Road, Deptford

  • 33371 Brunswick Ave., Lawrenceville

  • 3926 Festival at Hamilton, Mays Landing

  • 66 Centerton Road, Mount Laurel

  • 30 A&S Drive, Paramus

  • 48 Route 23, Riverdale

  • 1026 Broad St., Shrewsbury

  • 281-28 Route 10 East, Succasunna

  • 1379 Hooper Ave., Toms River

This article originally appeared on NorthJersey.com: NJ Joann fabrics stores stay open as chain emerges from bankruptcy

Advertisement