• by Tanya Gazdik , March 5, 2024

Venerable retailer Joann is reportedly discussing a bankruptcy filing. And it's not the first beloved brand on the brink of failure. 

The fabric and craft supplies retailer could file as soon as this week, according to Bloomberg News.  

The Bloomberg report noted that Joann, which went public in 2021, has had trouble maintaining liquidity and keeping on top of inventory levels amid a tough retail climate.

Joann’s stock price was trading at 22 cents as of Tuesday afternoon, down from as much as $4.62 in February 2023.

“The reality is many customers lost to online retail giants, such as Amazon, will never return, causing once-popular retail chains to fold,” according to The Street. “Given the high-profile failures of Bed Bath & Beyond and Christmas Tree Shops, we're already seeing this dynamic play out. Sears operated 700 stores when it filed for bankruptcy in 2018, but it operates just 13 stores after emerging from Chapter 11 bankruptcy in 2022.”

Joann, which operates 830 stores across 49 states, has been without a permanent chief since May when Wade Miquelon retired as president and CEO, notes Chain Store Age. 

“The news of Joann’s possible bankruptcy filing comes about six months after the company laid off an undisclosed number of employees at its corporate headquarters in Hudson in September 2023,” according to Cleveland.com. “Joann opened its first store in Cleveland in 1943.”

Joann and Belk both entered the year on shaky ground, according toMarketing Daily. 

Consumers are cutting back on nonessentials such as crafts as they deal with high grocery costs.

“This belt-tightening trend continues even though inflation has steadily declined in recent months,” Pymnts wrote last week. “Data from the U.S. Bureau of Labor Statistics shows grocery price inflation is outpacing standard inflation rates. These pricing trends likely explain why almost 58% of consumers are cutting their nonessential spending.”

Other companies to watch for bankruptcy include Petco, Express, AMC, Big Lots, Kohl’s, Footlocker, Stein Mart, The Container Store and JC Penney, according to JDSupra.com.