×

Ohio Valley Joann stores on list slated for closure

ST. CLAIRSVILLE — A pair of Joann Fabric and Crafts locations in the Ohio Valley are on the chopping block as the company plans to close more than half of its stores across the country.

Store locations at 282 S. Hollywood Blvd. in Steubenville and 67800 Mall Ring Rd Unit 305 in St. Clairsville are on a list of approximately 500 stores included in a store closure list Joann posted online at joannrestructuring.com. Stores in Beckley and Parkersburg in West Virginia also are on the list.

The Hudson, Ohio-based retailer announced its plans Wednesday, about a month after filing for Chapter 11 bankruptcy protection for the second time in less than a year. The company cited issues like sluggish consumer demand and inventory shortages.

“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 on the website. “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.”

The company filed a motion seeking permission from the court overseeing its bankruptcy to begin closing the stores.

The website says that, subject to court approval, going-out-of-business sales are expected to begin at affected stores on Saturday “and could continue for several months.”

Stores remain open and the website continues to serve customers, while team members are still receiving pay and benefits, it said.

Joann operates around 800 stores in 49 states. Stores identified for closure can be found from Alaska to Florida.

Joann’s roots date back to 1943, with a single storefront in Cleveland before growing into a national chain. Formerly known as Jo-Ann Fabric and Craft Stores, the company rebranded itself with the shortened “Joann” name for its 75th anniversary.

Both of Joann’s bankruptcy filings seen over the last year arrived amid some slowdowns in discretionary spending — notably with consumers taking a step back from at-home crafts, at least relative to the early COVID-19 pandemic boom. Joann has also faced rising competition in the crafts space from rivals like Hobby Lobby, as well as from larger retailers, like Target, who now offer ample art supplies and kits.

And, while Joann turned to implementing a new business plan after emerging from bankruptcy last spring, “unanticipated inventory challenges post-emergence, coupled with the prolonged impact of an excessively sluggish retail economy, put (Joann) back into an untenable debt position,” interim CEO Michael Prendergast noted in a sworn court declaration filed when Joann initiated its latest Chapter 11 proceedings on Jan. 15.

Prendergast explained that inventory shortages had significant ripple effects on Joann’s core business, particularly when “in-stock levels eventually dropped by upwards of 10%” and led to a “new phase of operational distress.”

Citing these and other macroeconomic challenges seen in the retail space over recent years, Joann has maintained that a sale of the business is the best path forward. The company says it has a proposed “stalking horse” bid agreement with Gordon Brothers Retail Partners.

Newsletter

Today's breaking news and more in your inbox

I'm interested in (please check all that apply)
Are you a paying subscriber to the newspaper? *

Starting at $2.99/week.

Subscribe Today