So many popular chains are already closing plenty of stores, including Allbirds, ShopRite, etc. And now, rumor has it, Joann Fabric is halfway there too. So, is this true? Is Joann Fabric going out of business?
There aren’t that many good fabric and craft stores, and Joann Fabric is a go-to place for many DIY and craft lovers. If this news has shaken you up, then do not worry!
In this guide, we will tell you exactly what is happening and whether Joann Fabric is going out of business or not.
About Joann Fabric
Joann Fabric is an American fabric and craft store that was founded in 1943 by German immigrants Berthold Reich, Hilda, Mathilda Rohrbach, Alma Zimmerman, Sigmund, and Justin in Cleveland, Ohio.
The brand name Joann was created by combining the names of the daughters of both families- Joan and Jacqueline Ann.
What started as a single retail store in 1943 has now expanded to approximately 850 locations in 49 states.
Joann Fabric is a go-to place for craft and DIY lovers, and the rumors of this company going out of business might have shocked you. Keep on reading as we debunk the rumors to you.
Is Joann Fabric Closing Stores?
Yes, Joann Fabric on November 2022 announced that it will be closing eight of its stores across the U.S.
As a result, they closed down two stores in Batavia, New York, and Marion, Ohio, on January 15 and then another two locations, Bridgeport, West Virginia, and Keene, New Hampshire, on January 22, 2023.
During both the mall and individual store closures, Joann Fabric held store-wide liquidation sales and gave massive discounts of 40%-60%.
Also, the employees whose jobs were affected by the store closures were given severance packages.
Why Is Joann Fabric Closing Stores?
Since Joann Fabric is such a popular fabric and crafts store with over 850 locations performing well, you might be wondering why Joann Fabric closed eight of its stores then.
Well, store closures and new openings are a major part of running a business successfully. Many businesses, from time to time, review the performance of all their stores and cut out the ones that consistently underperform.
This is exactly the reason why Joann Fabric is closing stores.
“In alignment with standard brick and mortar business processes, JOANN closes stores occasionally while simultaneously investing in, and opening brand new stores to best meet the needs of our customers,” said Shauntina Lilly, JOANN Manager of Public Relations, Diversity and Inclusion.
Is Joann Fabric Going Out Of Business?
Since Joann Fabric closed eight of its locations this year, you might be wondering if it is going out of business. Well, no, Joann Fabric is not going out of business, and the store closures that it did were simply a part of its business evaluation process.
In late November, Joann Fabric addressed and dismissed the rumors via its official Twitter account, stating that “Any store closures that we have planned are part of our normal business evaluation process,” the company wrote in a tweet on Nov. 28. “We are definitely not going out of business or having any mass store closures.”
List Of Joann Fabric Closing Stores 2023
Here’s a list of Jo-Ann Fabric store closure locations:
- Cockeysville, Maryland: 9978 York Rd, Cockeysville, MD 21030
- Batavia, New York: 4152 W Main St #12, Batavia, NY 14020
- Bridgeport, West Virginia: 2399 Meadowbrook Mall Rd., Bridgeport, WV 26330
- Keene, New Hampshire: 401 West St., Keene, NH 03431
- Centereach, New York: 191 Centereach Mall, Centereach, NY 11720
Joann Fourth Quarter and Full Year Fiscal 2023 Results
As per the company’s website, here are the key highlights of Joann’s fourth quarter and full-year fiscal 2023 results:
- Net sales of Joann declined by 8.3% to $2.2 billion. Also, the total comparable sales declined by 8.1% as compared to the previous year.
- The company generated a gross profit of $1,040.3 million on a GAAP basis, showing a decline of 14.2% compared to last year.
- The adjusted EBITDA of Joann was $98.5 million in 2023 as compared to $242.5 million last year.
If you are a frequent shopper at Joann, then the rumors about Joann Fabric Going Out Of Business might have shocked you.
Thankfully, these are just rumors, and there is nothing to worry about. The company is not going out of business but has merely closed eight of its locations, as shared above.
If the Joann store closest to you is on the list, then you can do a quick search on Google and find the closest alternative Joann location near you.
Where is Joann Inc. headquartered?
Joann Inc. is headquartered in Hudson, Ohio.
Who owns Joann Inc. today?
Joann Inc. is a publicly traded company with 67.64% shares, Leonard Green & Partners LP. owns the majority of the company.
Is Joann Inc. making losses?
As per the company’s website, Joann Inc. reported a net loss of $200.6 million in its latest financial report.