All articles tagged with #joann fabrics
In 2025, several well-known retail stores including Forever 21, Joann Fabrics, Party City, and Rite Aid closed down due to bankruptcy and financial struggles, marking a significant shift in the retail landscape amid economic challenges.
Joann Fabrics and Crafts has filed for Chapter 11 bankruptcy, citing more than $1 billion in debt, shrinking revenues, and a widening net loss. The company's stores and website will remain open, and it reassured customers, vendors, and creditors that there will be no disruption in services. The news led to a negative reaction on Wall Street, with shares trading down as much as 20%. Joann went public in 2021 but has faced challenges, including the absence of a full-time CEO since last May.
After 80 years in business, craft retailer Joann has filed for bankruptcy but will receive $132 million in new financing to address its capital structure needs. The company plans to reduce its funded debt by approximately $505 million and expects to keep its 800+ stores open during this time.