Future of Joann Fabric and Crafts Unknown
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.
More information here.
