Fabric and craft retailer Joann is working to close and liquidate every store by May after filing for Chapter 11 bankruptcy Jan. 15. The company has been around for 80 years, starting from a single storefront in Cleveland, Ohio, and becoming the nation’s leader in sewing and fabrics. The Joann in Athens at 743 E. State St. does not have a determined closure date.
Filing for Chapter 11 bankruptcy frees a company from the threat of creditors’ lawsuits while it reorganizes its finances.
With around 800 stores across 49 states, Joann said it would only close 500 stores initially, but is now planning to close all stores, according to the Associated Press.
Interim chief executive officer of Joann, Michael Prendergast, said in a press release the retail environment has faced significant and lasting challenges in the last several years.
“After carefully reviewing all available strategic paths, we have determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business,” Prendergast said.
The company plans to continue upholding commitments to customers and paying the wages and benefits of its employees.
“On behalf of the Board and leadership, I want to thank the thousands of Joann Team members across the nation for their dedication to our customers and mission, especially in light of everything our company has gone through in recent years,” Prendergast said.
As part of the liquidation, the stores have begun offering going-out-of-business sales on their products.
Allison Winland, a junior studying sociology pre-law and president and founder of the Crochet Club, said members may have to travel to surrounding areas to source materials.
The club works on projects for charity, including creating crocheted bees for chemo patients through the Marshall Honey Foundation. Members have also worked to craft crocheted hats, gloves and scarves for newly released inmates in the *Athens County Reentry Program.
The club is for crafters of all levels and supplies beginners with hooks and yarn needed to Crochet, which Winland said will become tough with the closure.
“I think that there's a lot of creative programs here, especially in the community and at Ohio University, so I think that a lot of clubs are gonna be deeply affected by (the closure),” Winland said.
Leila Abukamail, a junior studying special education and a member of the Crochet Club, said she took advantage of the sales to buy yarn and diamond painting supplies.
“I will still be going back to check to see if there are lower sales,” Abukamail said. “When I went, the yarn was only 25% off, and it was pretty picked through, honestly, the shelves are really bare.”
Athens has had other small business closures so far this year. Abukamail said when she saw Joann would be closing, she was sad and angry.
“I just have seen things place after place close,” Abukamail said. “This came right after Athena Grand closing, so there's just not a lot to do here in the first place. So getting rid of that crucial resource for my crafting is gonna be really hard.”
Abukamail said the Athens locations of Walmart and Dollar General comparatively do not carry very many crocheting supplies. She said Joann has a wider selection than the other stores and has Abukamail’s favorite brand of yarn, Joann’s Big Twist selection.
She wishes Athens had another craft store, with the nearest Michaels and Hobby Lobby in West Virginia, both a 40-minute drive or longer. More specifically, Parkersburg and Vienna, respectively.
“It's harder to buy yarn online. I like to be able to feel it and see the colors together to see how my project will look like,” Abukamail said. “You can't really see the colors together online.”
Chloe Dixon, a sophomore studying art therapy, said they were disheartened when hearing of the closure. As an art student, Dixion has previously had to go out to buy materials for classes, which will now become tougher.
"I was in a sculpture class, and there would be random materials like a foam ball that I would need to go find at Joann or spray paint or sheets of just insulation foam,” Dixon said. “The fact that it won't be there makes the materials harder to access for students.”
Craft-lovers can also purchase art supplies locally at the College Bookstore. Dixon said the College Bookstore offers higher quality material, but the prices are higher than Joann's and are not sold in bulk.
“I will probably have to order materials online,” Dixon said. “There's an art surplus store called Blick Art Materials that sells things at a discounted price because it’s for a surplus for art materials.”
Dixon said it is hard for craft supply stores to compete. With the closing of Joann, they are worried about the future of these stores and the future of Athens.
“It’s my future career, but in reality, I think people fail to realize how much art has an impact on their day-to-day life,” Dixon said. “Whether it's music or even just architecture, the building we're sitting in right now was designed by an artist.”
