As Joann Fabrics and JCPenney announce store closings, here's what's driving the pattern
The new year for brick-and-mortar retailers is picking up right where 2024 left off, as a slew of stalwart brands are set to shutter dozens of store locations amid shifting consumer patterns.
The new year for brick-and-mortar retailers is picking up right where 2024 left off, as a slew of stalwart brands are set to shutter dozens of store locations amid shifting consumer patterns.
The latest crop of closures are being led by fabrics and crafts retailer Joann, which said this week it was shuttering 500 locations in 49 states as part of a second go-around in Chapter 11 bankruptcy reorganization.
“This was a very difficult decision to make, given the major impact we know it will have on our team members, our customers and all of the communities we serve," the company said in a statement. "A careful analysis of store performance and future strategic fit for the company determined which stores should remain operating as usual at this time. Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann.”
Joann first filed for bankruptcy protection last March to address a heavy debt load, shrinking revenues and what it described as an “uncertain consumer environment.” It announced another Chapter 11 filing last month, this time with the goal of finding an entity to acquire all of its assets.
"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," it said in a release accompanying its latest filing.
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