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Struggling fabric and crafts seller Joann plans to close about 500 of its stores across the U.S. — or more than half of its current nationwide footprint.
The move, announced Wednesday, arrives amid a tumultuous time for Joann. Last month, the Hudson, Ohio-based retailer f iled for Chapter 11 bankruptcy protection for the second time within a year, with the company pointing to issues like sluggish consumer demand and inventory shortages.
Joann previously sought Chapter 11 in March 2024 and later emerged as a private company. But after operational challenges continued to pile up, Joann filed for bankruptcy again in January. It’s now looking to sell the business — and maintained in a filing Wednesday that closing “underperforming” locations is necessary to complete that process.
“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,” the company said in a statement sent to The Associated Press. “(But) right-sizing our store footprint is a critical part of our efforts to ensure the best path forward.”
Joann currently operates around 800 stores across 49 states. The initial list of the roughly 500 locations it’s looking to close can be found on the company’s restructuring website — spanning states including Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, New York, Pennsylvania, Texas and more.
When exactly those closures will take place and how many employees will be impacted has yet to be seen. Joann’s Wednesday motion seeks court permission to begin the process.
Joann’s roots date back to 1943, with a single storefront in Cleveland, Ohio. And the retailer later grew into a national chain. Formerly known as Jo-Ann Fabric and Craft Stores, the company rebranded itself with the shortened “Joann” name for its 75th anniversary.
Both of Joann’s bankruptcy filings seen over the last year arrived amid some slowdowns in discretionary spending — notably with consumers taking a step back from at-home crafts, at least relative to the early COVID-19 pandemic boom. Joann has also faced rising competition in the crafts space from rivals like Hobby Lobby, as well as from larger retailers, like Target, who now offer ample art supplies and kits.
And, while Joann turned to implementing a new business plan after emerging from bankruptcy last spring, “unanticipated inventory challenges post-emergence, coupled with the prolonged impact of an excessively sluggish retail economy, put (Joann) back into an untenable debt position,” interim CEO Michael Prendergast noted in a sworn court declaration filed when Joann initiated its latest Chapter 11 proceedings on Jan. 15.
Prendergast explained that inventory shortages had significant ripple effects on Joann’s core business, particularly when “in-stock levels eventually dropped by upwards of 10%" and led to a “new phase of operational distress.”
Citing these and other macroeconomic challenges seen in the retail space over recent years, Joann has maintained that a sale of the business is the best path forward. The company says it has a proposed “stalking horse” bid agreement with Gordon Brothers Retail Partners.
Article credited online at Reuters.com
Article credited from Reuters.com
Party City is closing down all of its stores, ending nearly 40 years in business.
CEO Barry Litwin told corporate employees Friday in a meeting that Party City is "winding down" operations immediately and that today will be their last day of employment.
"That is without question the most difficult message that I've ever had to deliver," Litwin said at the meeting, which was held on a video conference call. Party City's "very best efforts have not been enough to overcome" its financial challenges, he added, resulting in the company's collapse.
"It's really important for you to know that we've done everything possible that we could to try to avoid this outcome," Litwin said. "Unfortunately, it's necessary to commence a winddown process immediately."
The chain is the largest party supply store in the United States and recently exited bankruptcy in September 2023. That plan included the canceling of nearly $1 billion in debt, the dissolution of its stock and a majority of its 800 US stores staying open.
Though in the short term Party City managed to avoid the same fate as Bed Bath & Beyond and 99 Cents Only Stores, it still had more than $800 million in debt to overcome, which strained earnings this year.
The company had closed more than 80 stores from the end of 2022 to August 2024, according to its most recent financial documents.
Party City said in a previous statement that it had renegotiated many of its leases and exited "less productive locations," which resulted in many of chain's workers remaining employed. The company had approximately 6,400 full-time and 10,100 part-time workers as of 2021.
Party City filed for bankruptcy in January 2023 after struggling to pay off its $1.7 billion debt load. As a result, it was also delisted from the New York Stock Exchange.
Net sales for Party City decreased to $407 million for the three months ending in September 2023, compared to $502 million in the same period in 2022, according to the company's latest financial disclosures.
The company, which sells balloons, Halloween costumes and other party goods, has stumbled in the face of growing competition from e-commerce sites and pop-up concepts like Spirit Halloween. Competition from big-box retailers like Amazon, Walmart, Costco and others also crushed smaller chains.
It also had to contend with rising costs during the pandemic and a helium shortage, which hurt its crucial balloon business.
The chain joins a growing list of retailer bankruptcies this year as customers cut back on discretionary spending amid the rising cost of living. Notably, Big Lots announced Thursday it was starting "going out of business" sales at all of its locations after a plan for a private equity firm to rescue the bankruptcy retailer failed.
Story credited by CNN.
The satirical news publication The Onion was named the winning bidder for Alex Jones' Infowars at a bankruptcy auction Thursday, backed by families of Sandy Hook Elementary School shooting victims whom Jones owes more than $1 billion in defamation judgments for calling the massacre a hoax.
The purchase would turn over Jones’ company, which for decades has peddled in conspiracy and misinformation, to a humor website that plans to relaunch the Infowars platform in January as a parody. But the judge in Jones’ bankruptcy case said Thursday that he had concerns about how the auction was conducted and ordered a hearing for next week after complaints by lawyers for Jones and a company affiliated with Jones that put in a $3.5 million bid.
Within hours of the announcement about The Onion's winning bid, Infowars’ website was down and Jones was broadcasting from what he said was a new studio location. Up for sale were Infowars’ website; social media accounts; studio in Austin, Texas; trademarks; video archive; and other assets.
“The dissolution of Alex Jones’ assets and the death of Infowars is the justice we have long awaited and fought for,” Robbie Parker, whose daughter Emilie was killed in the 2012 shooting in Connecticut, said in a statement provided by his lawyers.
The satirical outlet — which carries the banner of “America’s Finest News Source” on its masthead — was founded in the 1980s and for decades has skewered politics and pop culture, including making Jones a frequent target of mocking articles. Mass shootings in the U.S., such as the Sandy Hook attack, are often followed by The Onion publishing slightly updated versions of one of its most well-known recurring pieces: "'No Way to Prevent This,' Says Only Nation Where This Regularly Happens.”
On his live broadcast, Jones was angry and defiant, calling the sale “a total attack on free speech.” He later announced his show was being shut down. Jones then resumed his broadcast from a new studio nearby and carried it live on his accounts on X.
At a court hearing Thursday afternoon in Houston, the trustee who oversaw the auction, Christopher Murray, acknowledged that The Onion did not have the highest bid but said it was a better deal overall because some of the Sandy Hook families agreed to forgo a portion of the sale proceeds to pay Jones' other creditors. First United American Companies, a business affiliated with one of Jones’ product-selling websites, submitted the only other bid. The trustee said he could not put a dollar amount on The Onion’s bid.
Walter Cicack, an attorney for First United American Companies, told U.S. Bankruptcy Judge Christopher Lopez that Murray changed the auction process only days before, deciding not to hold a round Wednesday where parties could outbid each other. Sealed bids were submitted last week, and the trustee chose only from those, Cicack said.
After the hearing, Jones said on his show that he thought the auction was unfairly rigged and expressed optimism that the judge would nullify the sale. He has repeatedly told his listeners that if his supporters won the bidding, he could stay on the Infowars platforms but that he had set up a new studio, websites and social media accounts in case they were needed.
“This was a auction that didn’t happen, with a bid that was lower, with money that wasn’t real," he said.
Ben Collins, CEO of The Onion’s parent company, Global Tetrahedron, told The Associated Press in a video interview earlier Thursday that it planned to relaunch the Infowars website in January with satire aimed at conspiracy theorists and right-wing personalities, as well as educational information about gun violence prevention from the group Everytown for Gun Safety. Collins would not disclose the bid amount.
“We thought it would be a very funny joke if we bought this thing, probably one of the better jokes we’ve ever told,” Collins said. “The (Sandy Hook) families decided they would effectively join our bid, back our bid, to try to get us over the finish line. Because by the end of the day, it was us or Alex Jones, who could either continue this website unabated, basically unpunished, for what he’s done to these families over the years, or we could make a dumb, stupid website, and we decided to do the second thing.”
Jones did not lose his personal X account, which has more than 3 million followers, in the auction. But the bankruptcy judge is deciding whether his personal accounts can be sold off at the trustee’s request.
Sandy Hook families sued Jones and his company for repeatedly saying on his show that the shooting that killed 20 children and six educators in Newtown, Connecticut, was a hoax staged by crisis actors to spur more gun control. Parents and children of many of the victims testified that they were traumatized by Jones’ conspiracies and threats by his followers . Jones has since acknowledged the shooting was “100% real.”
The Onion, based in Chicago, bills itself as “the world’s leading news publication, offering highly acclaimed, universally revered coverage of breaking national, international, and local news events.” Recent headlines have included, “Trump Boys Have Slap Fight Over Who Gets To Run Foreign Policy Meetings,” “Oklahoma Law Requires Ten Commandments To Be Displayed In Every Womb” and “Man Forgetting Difference Between Meteoroid, Meteorite Struggles To Describe What Just Killed His Dog.”