Future of Joann Fabric and Crafts Unknown

By Sabrina DammsiBerkshires Staff
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PITTSFIELD, Mass. — The future is uncertain for Joann Fabric and Crafts and the store that's been in the Dalton Avenue Shopping Center for more than 30 years.
 
The well-known national retailer that has served sewers, quilters, crocheters, and crafters for more than 80 years filed for Chapter 11 bankruptcy last week for a second time. 
 
The approximately 800 stores across the United States and online businesses are still operational, including one on Dalton Avenue and in Hadley. There are also several in New York State's Capital District and it also had a store in North Adams in the 1990s. The chain was better known as Jo-Ann's for decades.
 
"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, Jo-Ann's interim CEO, in a 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." 
 
Prendergast said this course of action was determined to maximize the business's value after reviewing all the available strategic paths.
 
"We hope that this process enables us to find a path that would allow Jo-Ann to continue operating as a going concern," he said in the press release. 
 
The business has a "stalking horse" bidder, Gordon Brothers Retail Partners LLC, which sets the floor for the auction process. 
 
Gordon Brothers has indicated an intention to liquidate the company by having going-out-of-business sales at all store locations. 
 
According to a Customer Frequently Asked Questions form, Jo-Ann Fabric and Crafts continues to actively solicit alternate bids and has received inquiries from parties potentially interested in continuing to operate Joann stores and online businesses. 
 
Last year, the company filed for Chapter 11 to address its capital structure. 
 
However, following this restructuring last year, it continued to "experience significant and lasting challenges in the retail environment."
 
These challenges, coupled with its "financial position and constrained inventory levels," "forced" officials to take this step. 
 
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Dalton Board Signs Off on Land Sale Over Residents' Objections

By Sabrina DammsiBerkshires Staff

Residents demanded the right to speak but the agenda did not include public comment. Amy Musante holds a sign saying the town now as '$20,000 less for a police station.'
DALTON, Mass. — The Select Board signed the sale on the last of what had been known as the Bardin property Monday even as a handful of residents demanded the right to speak against the action. 
 
The quitclaim deed transfers the nine acres to Thomas and Esther Balardini, who purchased the two other parcels in Dalton. They were the third-highest bidders at $31,500. Despite this, the board awarded them the land in an effort to keep the property intact.
 
"It's going to be an ongoing battle but one I think that has to be fought [because of] the disregard for the taxpayers," said Dicken Crane, the high bidder at $51,510.
 
"If it was personal I would let it go, but this affects everyone and backing down is not in my nature." 
 
Crane had appealed to the board to accept his bid during two previous meetings. He and others opposed to accepting the lower bid say it cost the town $20,000. After the meeting, Crane said he will be filing a lawsuit and has a citizen's petition for the next town meeting with over 100 signatures. 
 
Three members of the board — Chair Robert Bishop Jr., John Boyle, and Marc Strout — attended the 10-minute meeting. Members Anthony Pagliarulo and Daniel Esko previously expressed their disapproval of the sale to the Balardinis. 
 
Pagliarulo voted against the sale but did sign the purchase-and-sale agreement earlier this month. His reasoning was the explanation by the town attorney during an executive session that, unlike procurement, where the board is required to accept the lowest bid for services, it does have some discretion when it comes to accepting bids in this instance.
 
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