Popular Craft Retailer with 25 Indiana Locations Files Bankruptcy

I can honestly say that I have been to Joann Crafts and Fabrics one time this year. Turns out my $10 purchase did not save the company from filing for bankruptcy. It did help me bedazzle a microphone.

Bankruptcy Doesn't Always Mean Closing Forever

As soon as we hear about a business declaring bankruptcy, we just assume that the next announcement will be that they are closing forever. Chapter 11 allows a company time to restructure and follow a plan so that that can stay in business.

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Right now, the executives say that it is still business as usual at their 800 stores, which includes one in Evansville, Indiana. Employees, vendors, and landlords can expect to be paid during this process.

What Can Customers Expect?

If you are an avid crafter, and I know that we have a lot of makers here in Southern Indiana, you might have questions about this announcement. Here's what we know:

• Gift cards are still accepted.
• Joann Rewards and all other customer programs are continuing as usual.
• Joann's return policies remain the same.
• The online store is still an option Joann.com as well as the Joann mobile app.

What is bankruptcy? What happens in a bankruptcy case?

Almost Profitable

According to the news release from the executives at Joann, 95% of their stores are cash flow positive. So, it would seem like the 5% that are underperforming really need to be looked at.

Read More: Indiana & Kentucky Lic's Deli & Ice Cream Locations Not Closing

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