Local tailors welcome Joann bankruptcy resolution, but still worry about company's future

Kate Lawson, owner of Lady Kate's ReFashion, a clothing studio in Merriman Valley, is glad to see Joann's financial struggles nearing an end, noting the lack of supplies for local seamstresses and tailors.

"Local fabric and sewing supplies are limited, so I'm glad they are able to come out of bankruptcy and stay open," Lawson said. She used to work for Joann's and has been a decades-long customer of the retail giant.

Joann Inc. recently announced the company is coming out of the other end of bankruptcy, with a federal judge approving its plan to reorganize and remain open for business. The Hudson-based company will also operate as a private company.

Joann, which entered bankruptcy on March 18, told the U.S. Bankruptcy Court for the District of Delaware that it planned to reduce its debt by over $500 million, while receiving $132 million in new financing.

Akron-area clothing alterers, including Daleena Fredrick-Banks, a seamstress and former Joann employee, are encouraged by the news of Joann coming out of bankruptcy.

"I'm glad that this option will be around for years to come for all seamstresses, tailors and crafters," Fredrick-Banks said.

Local tailors wonder how online competition will affect Joann's future

George Jabbour, the owner of Jabbour's Clothing & Tailoring in Stow, said he is happy to see Joann reorganize and avoid more drastic measures; he "hates to see any business close." But he sounded a note of caution.

"As happy as I am to see Joann's coming out of bankruptcy, I wouldn't be surprised if sometime down the line they end up back in bankruptcy, just because online shopping has driven people out of having to go into these stores," Jabbour said. "I also believe that tailoring industry is slowly becoming an art that is mostly practiced by the older generation, so who knows how long stores like that can stick around for and be profitable."

Joann's financial woes: Joann Inc., the Hudson-based retailer, on the brink of Chapter 11 bankruptcy, report says

Why did Joann end up filing for bankruptcy?

The company entered bankruptcy for a variety of reasons, including increased competition from online retailers, supply chain issues and a slowdown of spending after COVID-19 policies were repealed or reduced, according to the company's court filings.

What does the future of Joann's look like?

Lawson believes that Joann's online competitors may soon overtake the company as tailors are forced to receive quality fabrics elsewhere.

"As far as their future and online competition, I would like to see a better selection of higher quality fabrics," Lawson said. "When teaching fashion design, I was forced to buy online and from other companies because Joann's no longer offered the quality fabrics we needed."

Fredrick-Banks hopes that Joann's will stick around for the long haul, but she knows that in business, nothing is certain.

"Online shopping has had an enormous impact on their business, but with the right mix of persons on the business side of buying and forecasting trends, I believe they will avoid bankruptcy," she said.

The company, started in Cleveland in 1943 as the Cleveland Fabric Shop, originally went private in 2011 when it was bought by Leonard Green & Partners for $1.6 billion. Joann returned to the public sector in 2021.

Reporter Anthony Thompson can be reached at ajthompson@gannett.com, or on Twitter @athompsonABJ

This article originally appeared on Akron Beacon Journal: With Joann's bankruptcy resolved, tailors ponder retailer's road ahead