All 11 Joann stores in New Jersey will close in the near future rather than just six as initially reported, part of the 800 stores now closing nationwide after the fabric and craft retailer was auctioned off to a new ownership group.
After filing for Chapter 11 bankruptcy for the second time within a year, Joann's remaining assets were put up for auction. Retail liquidator GA Group and Joann's term lenders won the bidding for the struggling company on Saturday, Feb. 22.
In collaboration with the new ownership group, the Hudson, Ohio-based retailer announced it will shut down operations at all stores after conducting going-out-of-business sales at each location.
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According to federal court records, the auction results are expected to be formally approved during a hearing on Wednesday in the U.S. Bankruptcy Court for the District of Delaware.
The company had previously announced the closures of "approximately 500" of its more than 800 locations across the U.S, including six in New Jersey. That would have left five remaining in the Garden State.
"Joann leadership, our Board, advisors and legal partners made every possible effort to pursue a more favorable outcome that would keep the company in business," the company statement reads. "We are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on all our stakeholders."
"We deeply appreciate our dedicated Team Members, our customers and communities across the nation for their unwavering support for more than 80 years," the statement continues.
Scott Carpenter, CEO of GA Group's Retail Solutions and Wholesale & Industrial Solutions teams, told the Ohio-based Akron Beacon Journal — part of the USA TODAY Network — that most of the closing Joann stores would remain open until the end of May.
There are 11 Joann stores in New Jersey, all of them now on the chopping block:
Previously, just the Deptford, Lawrenceville, Mays Landing, Mount Laurel, Succasunna and Toms River stores were slated to close as part of the bankruptcy procedure.
A spot check of Joanns closing across New Jersey found discounts of between 10% and 40%, and Christmas items discounted as high as 70%.
Is Joann accepting gift cards, other discounts?
Joann’s restructuring website says it is not accepting gift cards at this time. Discounts for Girl Scouts, teachers, military and health care are also paused. The company also says returns are not being accepted at the closing stores.
Second bankruptcy process in a year
In January, Joann announced that it was declaring Chapter 11 bankruptcy for the second time within a 12-month period as the beleaguered chain sought a buyer.
The chain 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 has declined over the past few years,” and the company in turn “struggled to turn a profit and was in desperate need of recapitalization,” retail analyst Neil Saunders said last year.
Long list of chains that have closed or reduced footprints
The company joins a long list of brick-and-mortar stores that have recently shut down or drastically curtailed operations, including Stop & Shop, Big Lots, Buybuy Baby, Family Dollar, Rite Aid, CVS, Bed Bath & Beyond and Christmas Tree Shops. Forever 21, which has 15 New Jersey stores, is also considering bankruptcy.
This article contains material from USA Today.
Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record.
Email: [email protected]; Twitter:@danielmunoz100 and Facebook