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Joan Inc., who has been supplying art for decades and clever Americans with clothes, recently announced that she has been planning to shut down all her American stores, exactly one month after filing Chapter 11 bankruptcy protection,
In a statement received by Reuters on Sunday, the 82 -year -old company announced its plan to sell all assets to a buyer group. Joan officials originally expected that a buyer would continue his business, but was slated the highest bidder to start selling business at all places.
By January, Joan had over 800 American retail places, although hundreds of people closed last month. Like last month recently, the company also had $ 538.3 million in inventory and appointed 19,000 people in all American states except Hawaii.
But the company also reported a $ 615.7 million loan even after being filed for bankruptcy, which included an arrear of more than $ 133 million to its suppliers. The monthly cost of running hundreds of places was $ 26 million in monthly rent alone.
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Shopkeepers enter a Zoan Store LLC location in Poreia, Illinois, US on Wednesday, September 19, 2018. (Daniel Acker / Bloomberg Getty Image / Getty Image)
Court documents also reveal that Joan recently faced issues with his suppliers, which abolished some products that depended on the series. At the same time, yarn and sewing item delivery became unpredictable, threatening the enthusiasts of Joan as an all-in-one shop for crafting.
In January, the company started closing around 500 places. A spokesman for the company told Fox Business that the closures were a step towards maximizing the value and longevity of their business.
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Shopping Carts sit in the front window of a Joe-N store LLC location in Molin, Illinois, US on Wednesday, September 19, 2018. (Daniel Acker / Bloomberg Getty Image / Getty Image)
The representative explained, “Carefully analysis of the performance of the store for the company and the future strategic fit has been determined which stores are acting as usual at this time.” “Right-sizing is an important part of our efforts to ensure the best way for our store footprint zoan.”
Joan’s recent announcement comes after a difficult year for the company. In March 2024, it first filed for Chapter 11 in its history, although at that time any of its 800 places were avoided to close.
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A customer enters a Joan store in L Serito, California, US on Wednesday, January 8, 2025. (David Paul Morris / Bloomberg / Getty Images)
Customers with Joan gift cards are allowed to use them by 28 February. Closing the remaining Joan stores will be phased out to reduce the disruption of vendors, customers and employees over the next few weeks.
Reuters and Fox Business’ Daniel Jeenors contributed to this report.
