After declaring bankruptcy earlier this year, Joann Fabrics is in the process of closing all of its stores, and has started a liquidation sale featuring a range of offers that you definitely won’t want to miss. Here’s how long they will last and what you can find.
How long will Joann’s liquidation sales last?
The liquidation sales began on February 15 and will continue for a few more months. For now, customers can still shop at physical stores, online, or through the mobile app. According to a statement from the company, only the remaining inventory in stores will be sold.
What liquidation offers does Joann Fabrics have?
Currently, more than 800 Joann stores across the country are holding liquidation sales due to closures, offering discounts and special prices on all items in inventory. Customers can find discounts of up to 75%, though promotions vary by location.
Some of the offers available at certain stores include:
- Cotton Canvas: 25% off
- Siser Vinyl: 20% off
- Blizzard Fleece: 30% off
- Spray Paint: 10% off
- Christmas Flowers: 70% off
- Candles and Accessories: 20% off
- Circuit Cutting Materials: 20% off
- Licensed Fabrics: 20% off
- Food Crafting: 10% off
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When will Joann stores close?
According to the company, all stores are expected to close by this spring, specifically in May, so it will be very soon.
Joann declares bankruptcy
In January, Joann announced that, for the second time in a year, it had filed for bankruptcy under Chapter 11 in the United States Bankruptcy Court for the District of Delaware.
The company filed for bankruptcy in March 2024 and emerged in April as a private entity owned by its creditors. According to recent court documents, its liabilities range between $1 billion and $10 billion.
In a statement, the company explained that, after emerging from a previous bankruptcy proceeding, it faced significant constraints due to its high level of debt, leaving little room for operational errors. However, Joann was unable to overcome several challenges and is now once again insolvent.
Inventory-related issues have caused stock shortages, affecting its reputation as a leader in the fabric and textiles industry, leading to a loss of customers.
“After carefully reviewing all available strategic options, we have determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business,” the statement reads.
What is Chapter 11 of the United States Bankruptcy Code?
Chapter 11, commonly known as the “reorganization chapter,” allows businesses, partnerships, or individuals to restructure their assets and liabilities appropriately without having to sell all their assets.
Who can seek protection under Chapter 11?
U.S. law allows any company or individual with a domicile, business establishment, or assets in the country to request judicial supervision to restructure their finances and operations under the provisions of Chapter 11.
There is no minimum or maximum value for the assets of a foreign company in the U.S. to be eligible for Chapter 11 protection under U.S. Bankruptcy Law.
In certain cases, deposits held by the legal firm managing the process in the U.S. may be considered assets, making the debtor eligible to seek Chapter 11 protection.
What benefits does Chapter 11 offer?
This section serves as an alternative to penalties, meaning that the company or individuals seeking it can avoid immediate dissolution, liquidation, and drastic cuts. During this process, the law allows the entity to continue operating and restructure without pressure from creditors. At the same time, it enables them to negotiate and propose a repayment plan for their debts.
Moreover, reorganization procedures under Chapter 11 offer the advantage that the company’s management retains control over the business, making the reorganization plans generally more effective, as the executives who stay in charge are the ones best familiar with the company, partnership, or individual involved.
