Joann, the fabric and craft retailer, has announced plans to close about 500 stores, representing over 60% of its outlets, in response to falling sales and its second Chapter 11 bankruptcy filing in less than a year. The company cited the necessary 'right-sizing' of its store footprint, acknowledging the grave impact on employees and communities. Despite restructuring its debt, analysts highlight issues like inventory shortages and increased shopper defection to competitors, significantly eroding Joann’s market position against firms like Hobby Lobby and Michaels.
Joann is closing about 500 stores, over 60% of its outlets, due to declining sales and its second Chapter 11 bankruptcy filing within a year.
The fabric and craft chain's leadership acknowledged the major impact of store closures on employees, communities, and customers, emphasizing the necessity of 'right-sizing'.
Retail analyst Neil Saunders indicated that despite the restructuring of debt, Joann’s inventory issues and shabby store conditions contributed to significant market share loss.
Saunders noted supplier reluctance due to Joann's troubled status, leading to 'a lot of out of stocks,' influencing customer behavior and loyalty.
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