Carol Johnson, Southern Indiana Business Report
Joann, the fabric and craft national retailer, will close 20 stores in Indiana as part of a restructuring plan. Two of those stores are in Bedford and Jasper.
The company filed a motion Wednesday in bankruptcy court seeking to close more than 500 of its 800 U.S. locations.
This marks the second time Joann has declared bankruptcy in less than 12 months. In April 2024, the company completed a restructuring that saw it delisted from the U.S. stock exchange and become a private company as part of a bankruptcy deal.
Joann Fabrics got its start in Cleveland, Ohio, and became one of the largest retailers in sewing, fabrics and craft supplies.
In January, Joann announced it had begun voluntary Chapter 11 proceedings in bankruptcy court to facilitate a sale process of “substantially all of its assets.”
“Since becoming a private company in April, the Board and management team have continued to execute on top- and bottom-line initiatives to manage costs and drive value,” said Michael Prendergast, interim chief executive officer of Joann, in the January press release. “However, the last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step. After carefully reviewing all available strategic paths, we have determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business. We hope that this process enables us to find a path that would allow Joann to continue operating as a going concern.”
A timeline has not been released for when stores will close.
The Bedford Joann is located on James Avenue in Town Fair Center. The Jasper store is located at 3703 N. Newton St.