Joann Fabrics and Crafts files for Chapter 11 bankruptcy
Source: NBC News
BUSINESS NEWS
Joann Fabrics and Crafts files for Chapter 11 bankruptcy
Company stores and its website will remain open and continue operating as usual.
A JOANN store in Davenport, Iowa.Daniel Acker / Bloomberg via Getty Images file
March 18, 2024, 10:25 AM EDT / Source: NBC News
By Rob Wile
Joann Fabrics and Crafts has filed for Chapter 11 bankruptcy as it seeks to reorganize its finances. … In a release accompanying its filing, Joann said stores and the company's website would remain open and continue operating as usual.
"Customers, vendors, landlords, and other trade creditors will not see any disruption in services," it said in a release. "The Company remains as focused as ever on providing customers with quality products and services that inspire their creativity. … Joann has about 850 stores in 49 states, the company said.
In its most recent quarter, Joann posted results showing it was more than $1 billion in debt, with shrinking revenues and a widening net loss, citing an “uncertain consumer environment.”
Wall Street reacted negatively to the news, with Joann shares trading down as much as 20%. The company went public in 2021 as the pandemic lingered and during an apparent boom in at-home, do-it-yourself consumer activity. But after debuting at about $12 and rising to nearly $17, its shares are now worth less than $0.25.
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In the mid 2000’s I picked up a second job at Joanne’s just for the health insurance benefits. I was clear with the manager about why I wanted the job and she was fine with it. There is a 90 day probation period for new hires, benefits kick in after those 90 days. No problem, I thought. They don’t want to waste training hours on someone who isn’t serious or washes out.
After reaching the 90 day mark plus a few weeks, I asked for more hours because only full time employees get benefits. I was being scheduled for 23-25 each week, just shy of full time.
This is when they decided to tell me “only managers get full time hours.”
The store manager was very apologetic and begged me to stay. I may have my faults (many, many faults) but what I can say is I am a damn good employee: reliable, positive, and hard working.
She should have told me the truth during the hiring process.
They had problems keeping employees not only because of the crappy pay, but also because of the ridiculous corporate structure.
While the day-to-day store manager was a hard-working, nice lady who knew the employees and, I think, genuinely cared, there were also regional mangers and a whole slew of other managers that would drop in for a week or two and babble on in corporate-speak. It was obvious that all of us peons were just numbers to them. They were hypercritical and would recommend unnecessary changes in order to report back to headquarters about the hard work they were doing “fixing” the location.
We had a good staff, loyal and happy customers, and followed all of the directions sent down by corporate regarding how the store should be set up, how products should be displayed, the promotions, etc. We were a good store, dammit.
Anyhow, I turned in my two weeks when I found out about the “only mangers get full time hours” bs. All those benefits they boldly and proudly display on the door are a sham. Unless you are a manager. And good luck getting promoted. When a management position becomes available, they ship in someone from a different location.
Sadly, from what I have experienced, these practices are standard in corporate chain stores and restaurants, which is why that was the last one I ever worked at.
Somewhere along the line, they decided to make money off the quilters and forget about the hobby sewers. Most middle-aged women have given up being stay-at-home moms, so we buy ready-made clothes instead of making our own. Younger women and teenagers, well they can't even figure out how to work a sewing machine!
But the quilters (mostly women) are still regular customers at Joann's, buying fabrics, threads and other quilting accessories. I think we're looking at the end of an era.
