Another Major Retailer In Michigan Files For Bankruptcy

Many of those older brick-and-mortar stores have been announcing they'll be closing their doors lately. With plummeting sales and a lack of people coming in because of other online businesses like Amazon and Temu.

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This major crafter outlet, is filing bankruptcy yet again here in the state of Michigan.

Another Major Retailor In Michigan Files For Bankruptcy

Joann, the fabric and crafts store, has filed for bankruptcy again, not even a few months after doing it earlier in 2024. The company says weak sales and inventory issues led to the second Chapter 11 filing.

It faced unexpected production stops on key items, which hurt sales and left them with a $615 million debt they couldn’t manage.

This is part of a larger trend of brick-and-mortar stores struggling in today’s market, where people are cutting back on non-essential spending, and the post-pandemic shopping boom has ended.

Joann is now looking to sell off most of its assets, with Gordon Brothers Retail Partners as the potential buyer. But they’re open to other offers. Experts predict that Joann might soon liquidate and close its stores, especially since it didn’t shut any locations during its first bankruptcy.

Despite this, Joann says they’re still committed to supporting their customers and keeping stores and the website open for now, while employees continue to be paid. Over the years, Joann’s sales have been slipping, with a brief spike during the pandemic when people turned to arts and crafts.

However, many loyal customers are now turning to competitors like Michaels and Hobby Lobby.