Popular Craft Retailer with 78 Locations in California Could Be Next to Close Stores

If you’re a crafter, where do you normally get your supplies? In a different lifetime, we ran a small custom creations business as a side hustle. We almost always ordered our vinyl and other supplies online.

Don’t get us wrong. We much rather see the color of a sheet of vinyl in person than order products online and hold our breath, hoping the color looks similar to a swatch on the internet. We much rather support a business in our community, but when we can find a bigger selection of vinyl at half the price online? From a small business standpoint, it just makes sense to buy good quality supplies at a lower price so that you can sell your products at a price point that allows you to make money, not just break even. 

We know we’re not the only crafters that feel that way and we’re sure that similar attitudes have contributed to the struggles that Joann is currently facing. On March 2, Bloomberg News said that they have credible information that the popular craft retailer is considering filing for bankruptcy as early as this week. Bloomberg suggests that they’ve been talking to their lenders behind the scenes so that once the bankruptcy filing becomes official, the craft retailer can start getting back on its feet quickly. 

READ MORE: 11 Boise Area Businesses That Will Close for Good in 2024

Financial insight website, Quartz, suggests that Joann’s struggles aren’t just due to competition from online retailers. They noted that during the pandemic, a lot of people turned to crafting as a source of comfort and something to do while they were trapped at home. We know, because we used it, that Joann’s interface that allowed you to order supplies through their website and pick them up curbside at your local store was very easy to use. Crafters were stocking up in large quantities, but as life got back to normal, so did people’s lives. They didn’t have as much time to craft and needed to spend their money on essentials, like food, that had been hit hard by inflation. 

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If and when Joann files for bankruptcy, does that mean that stores will close? It’s not clear right now. Joann has a portfolio of more than 830 stores nationwide, including 78 in California, 26 in Washington state, 14 in Utah and 8 in Idaho. Some retailers like Tuesday Morning and Bed Bath and Beyond, did close all of their retail stores after filing for bankruptcy.

Others like Rite Aid and David’s Bridal remain open, but have reduced their footprint and shrunk their number of locations. Getting out of leases and closing stores is a common way for companies going through bankruptcy to improve their overall financial footing.