New Haven Register (New Haven, CT)
Joann Inc. vows craft stores in state will stay open during bankruptcy restructure
Joann Inc. filed Monday for a “prepackaged” bankruptcy restructuring, with a pledge to keep its fabric and craft stores open and operating “as usual,” in the words of a senior executive.
Joann is the largest fabric, sewing, yarn and craft retail chain, competing with Michael’s and Hobby Lobby, as well as Target and Walmart department stores and various independent shops in Connecticut and nationally. Dating back to 1943 in Cleveland, the Joann name is derived from the two daughters of its founders.
The company has Connecticut stores in Brookfield, Clinton, Enfield, Hamden, Manchester, Milford, Newington, Norwich, Southington, and Torrington. As of January 2023, Joann averaged just over 20 employees in each of its stores nationally, for a total work force of about 20,000 people.
A Joann corporate spokesperson did not share specific plans for the company’s Connecticut stores when asked if any would close, referencing instead a website that states “any changes to the store fleet, including closures, remodels and new openings, are part of our normal course of business.”
Joann lost $21.6 million in its third fiscal quarter ending in October 2023, with revenue down 4% to $540 million. On Monday, the company stated 95% of its stores have positive cash flow.
As part of the bankruptcy agreement, lenders will assume control of the company, with Joann shares no longer traded on the Nasdaq stock exchange.
“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,” said Chris DiTullio, chief customer officer and co-lead of Joann’s interim office of the CEO in a Monday press release. “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.”
On a conference call last December, a Joann executive highlighted a “read-and-react” business strategy in which it is analyzing customer data immediately to capitalize on any product categories that are performing particularly well. Last fall, the company sold its Hudson, Ohio headquarters for $34.5 million, staying put with a new lease but cutting jobs there.
Wade Miquelon retired as CEO last May, having led Joann through the COVID-19 pandemic and an initial public offering of stock in March 2021, with control of the company having remained under control of the Los Angeles-based equity investment firm Leonard Green & Partner.
Other LGP portfolio companies include Authentic, The Container Store, Signet Jewelers and PDC Brands based in Stamford, which has a number of personal products including Dr. Teal’s, Calgon and Cantu.