Joann locations in Clarkston, Moscow among those targeted for closure
Fabrics and craft retail chain files motion in court to close about 500 stores, including those in area
Joann, a fabrics and craft retail chain, has placed its Clarkston and Moscow locations on a list of stores it plans to close that was filed Wednesday in bankruptcy court.
The Portland Business Journal reported Wednesday that Joann has filed a motion seeking court authority to start closing about 500 of its 800 stores in 49 states.
The news Wednesday follows an announcement in mid-January by Joann that it had started a voluntary Chapter 11 bankruptcy.
“After carefully reviewing all available strategic paths, we have determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business,” said Michael Prendergast, interim CEO of Joann, in a Jan. 15 news release.
The board and management have “continued to execute on top- and bottom-line initiatives to manage costs and drive value” since Joann became a private company in April, Prendergast said.
“However the last several years have presented significant and lasting challenges in the retail environment, which, coupled with our constrained inventory levels, forced us to take this step,” he said.
Joann started in a single storefront in Cleveland and grew into one of the nation’s largest fabric, sewing, arts and crafts stores, according to the news release.
Its employees were known for helping sewers and students completing class projects.
Joann is poised to join a number of national and regional chains to withdraw from north central Idaho and southeastern Washington in recent years.
Among them are Macy’s, JCPenney, Kmart, Shopko, Bi-Mart, Hastings, Eddie Bauer, Red Lobster and Shari’s.
In January, JCPenney and Eddie Bauer became part of the same company with the formation of Catalyst Brands.
The company was created when JCPenney and SPARC Group combined. SPARC Group’s brands included Eddie Bauer, Brooks Brothers, Aeropostale, Lucky Brand and Nautica.
Macy’s continues to downsize its locations, closing about 150 “underproductive” stores over a three-year period while investing in 350 “go-forward” stores, according to a January Macy’s news release.
