Fate Of 20 VA Stores Uncertain As Retailer Declares Bankruptcy Again

VIRGINIA — The fate of Joann's 20 Virginia locations is uncertain after the sewing and fabrics retailer Wednesday declared bankruptcy for the second time in less than a year.

The chain said that its stores are open as they usually are and employees are still being paid as it looks to sell its assets. Gordon Brothers Retail Partners has been named a "stalking horse" bidder to buy the company, setting a purchase amount floor while Joann actively seeks higher and better offers.

“The last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step," Joann interim CEO Michael Prendergast said in a news release.

"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. We hope
that this process enables us to find a path that would allow Joann to continue operating as a going concern.”

Joann's Virginia locations include:

• Charlottesville
• Chesapeake
• Christiansburg
• Culpeper
• Fairfax
• Falls Church
• Fredericksburg
• Hampton
• Lynchburg
• Martinsville
• Midlothian
• Newport News
• Richmond
• Roanoke
• Sterling
• Virginia Beach
• Warrenton
• Williamsburg
• Winchester
• Woodbridge

Over the past few years, the81-year-old Ohio-based retailer'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.