The Joann Fabrics and Crafts company recently filed for bankruptcy but said it will continue serving customers in stores and online.
Joann, which has about 850 locations scattered across 49 states, is working to reorganize its financial situation, NBC News reported Monday.
The outlet continued:
In its most recent quarter, Joann posted results showing it was more than $1 billion in debt, with shrinking revenues and a widening net loss, citing an “uncertain consumer environment.”
Wall Street reacted negatively to the news, with Joann shares trading down as much as 20%. The company went public in 2021 as the pandemic lingered and during an apparent boom in at-home, do-it-yourself consumer activity. But after it debuted at about $12 and rose to nearly $17, its shares are now worth less than $0.25.
Joann experienced a “pandemic boom” when customers spent more money on arts and crafts, but the company said crippling inflation has caused shoppers to shy away from such purchases, Fox 11 reported Monday.
It is important to highlight that a key gauge of inflation jumped higher in February, which shows inflation has ramped up in recent months, a Breitbart News article noted Thursday.
“The producer price index, which measures the prices paid to U.S. businesses for their goods and services, rose by 0.6 percent in the second month of 2024, the Department of Labor said Thursday,” the outlet stated.
Per NBC, the CEO position at Joann has been vacant since May.
Chris DiTullio, who is the chief customer officer and co-lead of the interim office of the CEO, said in a recent statement:
We appreciate the support from our financial and industry stakeholders in this agreement, and their confidence in our ability to continue driving positive business change.
There is no other retailer with the same ability to serve sewists, quilters, crocheters, crafters and other creative enthusiasts as we have for the past 80 years, and we take great pride in seeing the passion and engagement of our millions of customers and our Team Members.
The Ohio-based company has served customers since 1943, Fox Business reported Monday, adding Joann may soon be privately owned.
In April, Bed Bath & Beyond announced it filed for Chapter 11 bankruptcy and was about to undergo restructuring, according to Breitbart News.
