Major Craft & Fabric Store In Michigan, From Ohio, May Declare Bankruptcy Next Week

One of the biggest craft and fabric retailers in the country, Joann Fabrics seems to be in a tough position and could file for bankruptcy as soon as the week of March 11th. With the extensive amount of debt the company is faced with, they're starting to take a hard look at filing for Chapter 11 and giving control of the company to their lenders.

Crain's Detroit offered a brief insight into the matter before you run into a paywall:

Get our free mobile app

Crafts retailer Joann Inc. is considering a bankruptcy filing as soon as next week as part of a deal that would hand control of the company to lenders while allowing it to shed expensive debt, according to people with knowledge of the matter.

Being a corporate retailer can be tough especially when there's so much competition, as one commenter pointed out:

They have these huge stores, the overhead is just to high. They need to downsize and lose the craft stuff go back to their original game plan. Give the craft stuff to Michaels and stick with the yarn, sewing and fabrics. This is what made you famous. Better inventory control and organization in much smaller retail locations

What Will Happen To Joann Fabrics if They File For Bankruptcy?

The good thing is while you are filing for Chapter 11 bankruptcy you can still operate your stores while you’re trying to repay creditors, but even while you’re trying to get your finances in order, it’s very common that underperforming locations could start to close and consolidate products.

So there’s no telling what may happen next but we will have to keep an eye on new developments.