Major Fabric Store In Illinois Considers Chapter 11 Bankruptcy Very Soon

One of the largest craft and fabric retailers in the country is on the brink of Chapter 11 bankruptcy with 35 locations in Illinois.

I was in the new Joann Fabrics location in Rockford the other day and noticed how large the store is, but the inventory was very limited.  So, I asked one of the staff members why their product was so scarce if they just moved to a more spacious location.  All she could tell me was everything's just selling quickly and they're trying to restock as fast as they can.

I had a gut feeling something else was going on... sure enough: Chapter 11 bankruptcy.

Related: New Rockford Businesses Announce Opening Dates For 2024

Joann Fabrics On The Brink Of Chapter 11 Bankruptcy, 35 Illinois Locations

According to Bloomberg, Joann's may file for Chapter 11 as soon as next week starting Monday, March 11th, 2024 after being in talks with lenders for new cash.

Crain's Detroit elaborated on the debt that the major craft retailer owes.

"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."

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With 830 stores across the country in 49 states, including Illinois, what does that mean for the future of Joann Fabrics stores?

Luckily, there is still hope if Joann's does file for bankruptcy.  They don't necessarily have to shut down all their stores while paying back creditors.  If underperforming locations start failing that would lead to store closures.

Related: New Boot Store Officially Opens In Rockford - Details

If you're a loyal Joann's customer like myself, this is really sad to hear!  There really is no other shop in the area that offers all the craft supplies you're looking for along with fabrics like fleece, cotton, faux fur, and so much more.

Joann's hasn't officially confirmed that they're filing for Chapter 11 bankruptcy, but we'll get updates as soon as we know more information next week.

Luckily, the former Joann Fabric's location in Rockford has a new tenant - Boot Barn! They're opening soon and you can get all the details here.