For 80 years Joann Fabric had acted as a retailer of clothing and Fabrics across the nation. As of February 23rd the company announced they had filed for bankruptcy for a 2nd time within the year.
The first time they filed for bankruptcy was in an attempt to restructure the company’s ballooning debt, the second was due to CEO Michael Prenderghast believing that was the best course of action. In over 49 states Joann will be gradually shutting down their stores, originally going for 500 stores but now shutting down all of their over 800 stores.
Joann was experiencing declining profits followed by losing market shares to a GA group along with brick-and-mortar competitors.
Joann described the situation as facing continuing large scale challenges within their environment, which was only exacerbated by their financial position and inventory levels.
