Loyalsock Township, Pennsylvania — An 82-year-old sewing and fabric retailer has filed for bankruptcy for the second time in a year.
Representatives for Joanne Fabrics said in a statement Wednesday that low sales and inventory have forced the chain to file for Chapter 11 again. Joan first filed for bankruptcy in March 2024. The company emerged from bankruptcy as a privately held company a month later, allowing all of its stores to remain open.
The company is considering selling its assets to Gordon Brothers Retail Partners and liquidating the business. However, they will continue to consider other bids, according to the release.
A Creditsafe spokesperson said Joan had unstable payments with suppliers in 2024. At the beginning of last year, about 30% of the company’s invoices were overdue. It leveled out by mid-2024, but by October, bill delinquencies were back on track, with just over 36% showing they were between 61 and 90 days overdue, according to Creditsafe data. Creditsafe said in court documents that Joan’s second bankruptcy was primarily due to unpredictable and inconsistent deliveries of thread and sewn products from suppliers. There wasn’t enough inventory on the shelves to keep the inventory customers wanted.
Joan will continue to serve customers both in-store and online during the court process, according to the release. However, some stores, including the Hermitage store, were announced to be closing earlier this week.
The Williamsport store on East Third Street at TJ Maxx Plaza announced its closure last month and began a liquidation sale. The store’s last day is Sunday, January 19th. The plaza’s owners will reportedly not renew the store’s lease to make way for a grocery store that will eventually fill the space. Officials have not said which grocery store will occupy the space. Although there are rumors that a Trader Joe’s will be moving in, a company spokesperson said there are currently no plans to open a store in Williamsport.
Related article: Jo-Ann Fabrics at TJ Maxx Plaza prepares to close, new tenant moves in
Other Joanne locations in the North Central area include a store near Selinsgrove at Susquehanna Valley Mall; Joann currently has more than 800 stores in the United States.
