Jump to content

Jo-Ann Stores

From Wikipedia, the free encyclopedia
(Redirected from Joann Fabrics)
Not to be confused with JoAnne's Bed and Back.
"JoAnn" redirects here. For other uses, see Jo-Ann (disambiguation).

Jo-Ann Stores, LLC
JOANN
Formerly
  • Cleveland Fabric Shop (1943–1963)
  • Fabri-Centers (1963–1998)
Company typePrivate
Nasdaq: JOAN
IndustryRetail
Founded1943; 82 years ago (1943) in Cleveland, Ohio, U.S.
Founders
  • Hilda Reich
  • Berthold Reich
  • Justin Zimmerman
  • Alma Zimmerman
  • Sigmund Rohrbach
  • Mathilda Rohrbach
DefunctMay 30, 2025[1]
FateChapter 11 bankruptcy and liquidation
Headquarters5555 Darrow Road,
Hudson, Ohio
,
United States
Number of locations
855[2] (2021)
790 (before company-wide shutdown)
Key people
  • Scott Secella
  • Chris DiTullio (CEO)
ProductsCrafts and fabrics
RevenueIncrease US$2.7 billion (2021)[3]
Increase US$154 million (2021)[3]
Increase US$212 million (2021)[3]
Total assetsUS$2.254 billion (2021)[4]
Total equityIncrease US$1.366 billion (2021)[3]
Number of employees
23,000 (2021)
Websitejoann.com

Jo-Ann Stores, LLC, (stylized JOANN) was an American specialty retail chain that specialized in fabrics and arts and crafts supplies. The chain was based in Hudson, Ohio, and had operated 800 stores across 49 U.S. states until the beginning of 2025. By the end of February 2025, the company began the process of liquidating all of its stores after failing to obtain a buyer.[5] 255 stores are shuttered by the end of April while the remaining 535 locations permanently closed May 31, 2025.[6]

History

[edit]

Origin

[edit]
Older Jo-Ann store in Henderson, Nevada

German immigrants Hilda and Berthold Reich, Sigmund and Mathilda Rohrbach, and Justin and Alma Zimmerman opened the Cleveland Fabric Shop in Cleveland, Ohio in 1943. After further expansion, the store's name was changed to Jo-Ann Fabrics in 1963. The store's name was created by combining the names of the daughters from both families: Joan and Jacqueline Ann.[7]

Jo-Ann Fabrics became a publicly held corporation traded on the American Stock Exchange under the name of Fabri-Centers of America, Inc. in 1969. The company made its first acquisition with the purchase of Cloth World, a 342-store southern company, in 1994. At the time of the acquisition, Fabri-Centers operated 655 stores.[7]

In 1997, Fabri-Centers settled for $3.3 million on federal charges that it had misled investors in 1992 by overstating its earnings before it sold securities. CEO Alan D. Rosskamm, grandson of Hilda and Berthold Reich, settled a related administrative complaint as well.[8][7]

Fabri-Centers acquired House of Fabrics, which also previously operated as Fabricland, Fabric King, and So-Fro Fabrics, in 1998.[9] In September 1998, the company changed its name to Jo-Ann Stores Inc.,[10] and all of its stores were renamed Jo-Ann Fabrics.

Darrell Webb became chairman and CEO of Jo-Ann Fabrics in March 2006.[7]

Jo-Ann Stores announced plans to sell out to private equity firm Leonard Green & Partners for $1.6 billion on March 23, 2010, and was delisted from the stock exchange in March 2011.[11] Darrell Webb resigned in March 2011 and Travis Smith was promoted to CEO after joining the company in March 2006.[12] Travis Smith announced his resignation in March 2014. The company's CFO, Jim Kerr, agreed to become CEO until a replacement was found.[13]

Jo-Ann stores named Jill Soltau as president, chief executive officer and a member of the company board of directors in March 2015.[14] Under Soltau's leadership, the retailer opposed President Trump's tariffs citing American manufacturers not being able to meet Jo-Ann's quality or volume needs.[15] She joined seven other retail CEOs at a meeting with the administration where they discussed how the tariff would raise consumer prices and hurt businesses.[16][17][18] Jo-Ann Stores rebranded to Joann in March 2018 as a way to move beyond fabrics and encompass more craft.[19]

Soltau left Jo-Ann Stores in March 2018. Wade Miquelon became president, CEO, and a member of the board of directors in March 2019.[20]

In March 2019, Jo-Ann partnered with GoldieBlox for a monthly subscription box called the GoldieBlox Box to help children ages 8 and up to develop STEM skills.[21]

COVID-19 pandemic

[edit]

Prior to the COVID-19 pandemic, the chain lost $546.6M in its 2019 fiscal year. However, by the end of the 2020 fiscal year, it made $210.9M to $212.9M and added 9 million new customers. The increase in sales is credited to mask mandates and an increased interest in do-it-yourself projects.[citation needed] In March 2021, Jo-Ann made plans to create an e-commerce facility in West Jefferson, Ohio to better serve its online sales.[22]

On March 16, 2021, Jo-Ann went public on the Nasdaq stock exchange under the ticker symbol JOAN.[23] Leonard Green & Partners retained a majority stake in the company, allowing it to nominate up to five members of the board of directors.[24]

COVID-19 lockdown controversy

[edit]

During the COVID-19 pandemic, Jo-Ann received public criticism for keeping many of their stores open amidst health concerns for elderly customers and refusing paid sick leave for employees affected by COVID-19.[25][26] Jo-Ann defended themselves in a statement by claiming that their free mask kits helped local hospitals, which allowed the stores to be considered "essential business",[27] despite many hospitals rejecting homemade masks.[28] Michigan's governor, Gretchen Whitmer, forced stores to close down in the state after Jo-Ann sent a letter requesting to not be included in stay-at-home orders. Whitmer stressed that the same materials used to create masks are able to be sold online without in-person contact.[29] Most of the materials used in the free mask kits were later revealed to be remnants, which are often sold by Jo-Ann at a discount, leading some media outlets to disparage the program as "just scraps from the clearance bin".[30]

Bankruptcies and liquidation

[edit]
A Joann store with a going out of business sign in Oklahoma City.

In September 2023, Jo-Ann announced it would lay off an unspecified number of administrative employees.[31] In October 2023, Fitch Ratings and CreditRiskMonitor reported that Joann was nearing a potential Chapter 11 bankruptcy filing.[32] That month, Joann was handed a delisting notice from Nasdaq as its stock share price fell below $1 per share, and stated that if Joann was unable to get its shares up to $1 or above, its stock would be delisted from the Nasdaq.[33]

Jo-Ann filed for Chapter 11 bankruptcy protection on March 18, 2024.[4] The company planned to cut over $500 million in debt and restructure into a privately held company. It planned to complete its filing by late April with no employees or stores affected.[34] Nasdaq halted the trading of the company's stock on March 28, and on April 9, Jo-Ann was formally delisted from the exchange.[35][36] The company's reorganization plan was approved by a federal judge on April 25, and Jo-Ann emerged from bankruptcy as a private company.[37]

On January 15, 2025, Joann filed for Chapter 11 bankruptcy protection for the second time in less than a year.[38] The company cited continued declining sales as a contribution to its second filing. Stores were expected to remain open throughout the procedure as the company attempts to shed its debt by $500 million.[39][40]

On February 12, 2025, Joann announced the closure of 500 of its remaining 800 locations, in an effort to "right-size" the company's footprint.[41] 61 of the locations slated for closure are in California, while Florida, Michigan, Ohio, and Pennsylvania will each see more than 30 Jo-Ann locations close.[42] On February 24, 2025, it was announced that Joann would liquidate the remaining 300 locations after failing to find a buyer. Its assets will be sold to GA Group, a private equity-firm.[43]

References

[edit]
  1. ^ Mattison, Jennifer (May 30, 2025). "As Joann stores finally close today, the internet grieves the beloved fabric, arts and crafts haven". Fast Company.
  2. ^ "Craft retailer emphasizing sharing, technology in new test store". www.bizjournals.com. June 13, 2018. Retrieved September 3, 2019.
  3. ^ a b c d "JOAN Financials". Nasdaq. January 30, 2021.
  4. ^ a b "Voluntary Petition for Non-Individuals Filing for Bankruptcy" (PDF). Docket of JOANN, Inc. (Initial bankruptcy filing, entered as Doc. 1 of case Case No. 24-1018). Kroll. March 18, 2024. Retrieved May 17, 2024.
  5. ^ Hernandez, Joe (February 25, 2025). "Fabric giant Joann is going out of business and closing all of its 800 stores". NPR.
  6. ^ Snider, Mike (April 25, 2025). "255 Joann stores close by end of April: See list of locations, closing dates". USA Today.
  7. ^ a b c d Cho, Janet H. (December 24, 2010). "Sixty-seven years of fabrics and crafts". cleveland.com. Retrieved September 3, 2019.
  8. ^ Eaton, Leslie (February 19, 1997). "Fabri-Centers Agrees to Pay $3 Million to Settle Charges". The New York Times. ISSN 0362-4331. Retrieved April 25, 2019.
  9. ^ Vrana, Debora (February 2, 1998). "House of Fabrics to Be Sold to Rival Retailer for $100 Million". Los Angeles Times. Retrieved September 3, 2019.
  10. ^ "Fabri-Centers changes name". www.bizjournals.com. September 1, 1998. Retrieved September 3, 2019.
  11. ^ Carter, Adrienne; Cane, Jeffrey (December 23, 2011). "Leonard Green Offers $1.6 Billion for Jo-Ann Stores". The New York Times. Retrieved July 2, 2011.
  12. ^ Cho, Janet H. (August 13, 2014). "Jo-Ann Stores' President and CEO Travis Smith steps down". cleveland.com. Retrieved April 25, 2019.
  13. ^ "Jo-Ann Fabric and Craft Stores says President and CEO Travis Smith has stepped down". Associated Press. March 24, 2015. Retrieved January 6, 2020.
  14. ^ Dealer, Plain (February 13, 2015). "Jill Soltau named new Jo-Ann stores president, CEO". cleveland.com. Retrieved April 25, 2019.
  15. ^ Taylor, Kate (October 2, 2018). "JCPenney stole the CEO of Joann Stores as she was in the midst of mounting a furious campaign against Trump's tariffs". INSIDER. Retrieved September 3, 2019.
  16. ^ Townsend, Matthew (April 25, 2019). "Yarn and Fabric Stay on Trump's Tariff List Despite Crafters' Pleas". Bloomberg. Retrieved April 25, 2019.
  17. ^ Feloni, Richard. "Here are the 8 retail CEOs who met with Trump to discuss stopping the border tax". Business Insider. Retrieved April 25, 2019.
  18. ^ Gibson, Ginger (February 15, 2017). "Exclusive: Retail CEOs to meet Trump in bid to kill U.S. border tax". Reuters. Retrieved April 25, 2019.
  19. ^ "Following Its Rebrand, Joann Is No Longer Your Mom's Fabric Store". www.adweek.com. July 30, 2018. Retrieved April 25, 2019.
  20. ^ Grzelewski, Jordyn (February 5, 2019). "JoAnn Stores names new CEO". cleveland. Retrieved January 6, 2020.
  21. ^ "Joann puts brainy spin on subscription model". Chain Store Age. Retrieved January 6, 2020.
  22. ^ Navera, Tristan (January 25, 2021). "Jo-Ann Stores to create 175 jobs at e-commerce facility in West Jefferson". www.bizjournals.com. Retrieved April 12, 2021.
  23. ^ Chen, I.-Chun (March 16, 2021). "Joann stock rises initially after company raises $131M in IPO". cleveland. Retrieved April 12, 2021.
  24. ^ Garcia, Tonya. "Joann is going public: 5 things to know about the arts-and-crafts retailer". MarketWatch. Retrieved April 12, 2021.
  25. ^ Jamieson, Dave (March 25, 2020). "These Retailers Refused To Close During The Pandemic, So An Illinois City Shut Them Down". Huffington Post. Retrieved March 31, 2020.
  26. ^ Ockerman, Emma (March 26, 2020). "JoAnn Fabrics Employees Are Furious They're Working in Crowded Stores After the Company Declared Itself 'Essential'". Vice. Retrieved March 31, 2020.
  27. ^ Corkery, Michael; Maheshwari, Sapna (March 25, 2020). "Essential? Retailers Like Guitar Center and Michaels Think They Are". The New York Times. Retrieved March 31, 2020.
  28. ^ "'Thanks, but no thanks': Hospitals are turning away homemade face masks amid coronavirus". Nola.com. March 23, 2020. Retrieved March 31, 2020.
  29. ^ Burns, Gus (March 31, 2020). "JoAnn Fabrics craft stores not 'critical infrastructure', must close Michigan locations, AG Dana Nessel says". Mlive.com. Retrieved March 31, 2020.
  30. ^ Jamieson, Amber (April 2, 2020). "Staff Said The Free Mask Kits At Jo-Ann Fabrics Are Just Scraps From The Clearance Bin". Buzzfeed News. Retrieved April 3, 2020.
  31. ^ Marotta, Eric (September 13, 2023). "Joann Fabrics to lay off workers at Hudson headquarters". Akron Beacon Journal. Retrieved September 16, 2023.
  32. ^ Salpini, Cara (October 2, 2023). "11 retailers at risk of bankruptcy in 2023". Retail Dive. Retrieved October 3, 2023.
  33. ^ Suttell, Scott (November 1, 2023). "Nasdaq sends delisting notice to Joann". Crain's Cleveland Business. Retrieved November 4, 2023.
  34. ^ Clanton, Alicia; Phakdeetham, Janine (March 18, 2024). "Crafts Firm Joann Files for Bankruptcy as Consumers Retreat". Bloomberg. Retrieved March 18, 2024.
  35. ^ "Form 3 - Initial statement of beneficial ownership of securities". U.S. Securities and Exchange Commission. March 15, 2024. Retrieved April 17, 2024.
  36. ^ "Form 25-NSE - Notification filed by national security exchange to report the removal from listing and registration of matured, redeemed or retired securities". U.S. Securities and Exchange Commission. May 17, 2024.
  37. ^ Garrett, Amanda (April 25, 2024). "Hudson-based Joann to emerge from bankruptcy as private company; all stores will stay open". Akron Beacon Journal. Retrieved April 25, 2024.
  38. ^ Knauth, Dietrich (January 15, 2025). "Craft retailer Joann files for bankruptcy for second time in a year". Reuters. Retrieved January 21, 2025.
  39. ^ Randles, Jonathan (January 15, 2025). "Crafts Retailer Joann Files Second Bankruptcy in A Year". Bloomberg. Retrieved January 15, 2025.
  40. ^ "JOANN INC. Bankruptcy Filing". bankruptcyobserver.com. Retrieved January 21, 2025.
  41. ^ Valinsky, Jordan (February 12, 2025). "Joann, the bankrupt fabrics retailer, is closing 500 of its 800 stores". CNN. Retrieved February 12, 2025.
  42. ^ Walrath-Holdridge, Mary; Sergent, Jim. "Joann closing 500 fabric and craft stores in 49 states: Search full list of closures". USA TODAY. Retrieved February 12, 2025.
  43. ^ Knauth, Dietrich (February 24, 2025). "Bankrupt crafts retailer Joann closing all stores". Reuters. Retrieved February 24, 2025.
[edit]
Retrieved from "https://en.wikipedia.org/w/index.php?title=Jo-Ann_Stores&oldid=1293555744"