Nearly a month after voluntarily filing for Chapter 11 bankruptcy, for the second time in less than a year, Joann announced plans to close approximately 500 of its more than 800 locations.
Among those listed by the fabrics and crafts retailer is Flagstaff's location at聽1514 S. Riordan Ranch St., one of the 11 stores in Arizona to be included in a motion filed in聽U.S. Bankruptcy Court as the company seeks to "maximize the value of the business." A hearing for the motion is scheduled for Friday, Feb. 14, with store closing sales expected to begin on Saturday, Feb. 15, should the court approve the plan.
鈥淎s part of the ongoing Chapter 11 process and our efforts to maximize the value of the business, Joann has filed a motion seeking court authority to begin closing approximately 500 stores across the nation," a statement from the company said. "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. 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."
While the company released its list of locations that will begin closing immediately, Joann's also notes that the current聽stalking horse bidder in its bankruptcy filing, Gordon Brothers Retail Partners LLC, "has indicated that it intends to pursue a liquidation of the company and conduct going-out-of business sales at all store locations" if it emerges as the buyer in the court-supervised sale process. Should another buyer emerge in the bankruptcy filing, the remaining Joann locations could continue to operate.
The loss of Joann would bring another closure to the Varsity Shopping Center on South Riordan Ranch Road, following Peter Piper Pizza's departure in August, and serve as another national chain leaving Flagstaff after Big Lots conducted a similar process last summer.
Red Lobster was also in limbo last year after the chain faced new ownership.
According to Joann, customers will still be able to shop online at this time as sales from will not be impacted by the court filing. Though the company ceased gift card sales in January and they are no longer accepted online, they can still be used for in-store purchases. The company is also still accepting returns, but a decision by the court could shift the company to a 14-day return policy.