How Joann Fabric Bankruptcy Will Affect GA Stores

GEORGIA — The fabric and craft retailer Joann, which has 20 stores in Georgia, has filed for bankruptcy as it struggles to recover from pandemic losses and a change in customer spending habits.

All of its 850 stores will remain open during Chapter 11 bankruptcy proceedings, the 81-year-old Ohio-based retailer said in a statement Monday. Joann has stores in the following Georgia locations:

• 2800 Old Dawson Road, Albany
• 965 N. Point Drive, Alpharetta
• 3055 Atlanta Hwy., Athens
• 3435 Wrightsboro Road, Augusta
• 137 Golden Isles Plaza Pwy., Brunswick
• 5555 Whittlesey Blvd., Ste 2900, Columbus
• 1380 Dogwood Drive, Conyers
• 540 A. Lakeland Plaza, Cumming
• 2655 N. Decatur Road, Decatur
• 9439 Highway 5, Douglasville
• 2255 Pleasant Hill Road, Ste. 200, Duluth
• 250 Pavilion Pkwy., Fayetteville
• 834-A Dawsonville Hwy., Gainesville
• 501 Roberts Court, Kennesaw
• 5080 Riverside Drive, Ste. 1300, Macon
• 1074 Bullsboro Drive, Unit #6, Newnan
• 7400 Abercorn St., Savannah
• 1630 Scenic Hwy. N., Ste. O, Snellville
• 612 Virginia Ave. N., Tifton
• 2951 Watson Blvd., Warner Robins

The company said it has acquired $132 million in new funding. The company plans to use this funding to reduce its debt by approximately $505 million. Over the past few years, the company's debt has climbed to $1 billion. Sales had slumped after a jump during the pandemic, when Americans were isolated in their homes and spent more money on sewing and craft supplies. Due to the subsequent inflation, many people had to cut back on their discretionary spending.

Joann customers won’t see any disruption of service, and the company “remains as focused as ever on providing customers with quality products and services that inspire their creativity,” according to the statement.

“This agreement is a significant step forward in addressing Joann’s capital structure needs, and it will provide us with the financial resources and flexibility necessary to continue to deliver best-in-class product assortments and enhance the customer experience wherever they are shopping with us,” Scott Sekella, the company’s chief financial officer, said in the statement.