With more than 500 stores closed less than two weeks after it was revealed, craft retailer Joann says “out-of-business sales” will start everywhere.
Joan filed for Chapter 11 bankruptcy protection in January, marking a second such filing by the company within a year. As part of the bankruptcy process, Joann confirmed earlier this month that he would close around 530 “low-performing” stores in more than 40 states “quickly”;
At the time, the company warned that additional stores could close as the process was carried out. On Sunday, Joanne made it clear that it was true.
Joan has over 70 locations in California.
At the weekend auction, the GA Joan Retail Partnership was a bidder for the company. According to the Akron Beacon Journal, Joann’s Financial Services Company GA Group and Term Lender are involved. The group has worked with Joan in the past.
The partnership “will acquire essentially all of Joanne’s assets,” the company said in a statement released Sunday.
“In relation to this agreement, subject to the Bankruptcy Court’s approval of the transaction, the bidder plans to abolish the company’s operations and sell all stores,” the statement continued, adding that the retailer’s Leadership, board of directors, advisors and legal partners “made every effort to pursue a more favorable outcome that would keep the company in business.”
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Additional information posted on the Joanne’s reorganization website states that if the court approves the transaction, the company “hopes to begin or continue selling in all locations.” Customers can shop these sales in stores, online, and through the Joann Mobile app.
The sales hearing is currently scheduled for Wednesday.
Sales are expected to take several weeks, according to the customer FAQ page. If a gift card is available from Joan, the company warns that it will only be accepted until the end of February. Special discounts like teachers and girl scouts have been suspended. Returns are not accepted either.
Additional details were not available immediately.
Shoppers saw similar moves from the big lot that also worked through Chapter 11 bankruptcy filing. Discount retailers closed hundreds of Wave stores before announcing that they would begin “down-business” sales in mid-December.
Then earlier this month, court documents suggested that hundreds of large lot shops could remain open under various wholesalers. However, the Big Lots website continues to advertise that all stores are closed. Representatives from Big Lots and Gordon Brothers did not respond to Nexstar’s request for comment.
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