Liquidation sales to begin as chain with 800+ locations to close store & shoppers ‘refuse to go to Hobby Lobby’
CRAFTS fanatics will soon be able to grab a bargain as liquidation sales are set to start at a store that’s about to close.
The decision to shutter the Jo-Ann Fabrics and Crafts outlet in Burlington, Iowa – around 160 miles from Des Moines – has sparked outrage among some loyal customers.
Chiefs have penciled in the closure of the store for January, and discount sales will be held in the run-up to the shutdown, as reported by The Hawk Eye.
The prices of items will be cut by between 70 and 90 percent, according to store manager Barbara Boyles.
She revealed that the prices of all items would be cut as part of the sales.
Boyles claimed she was blindsided by the news of the closure.
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She said she was told on October 31 and received an email.
Shoppers have been left in despair as news of the pending shutdown circulated.
One diehard fan has vowed not to shop at rivals.
“Looks like I’ll be heading up to Iowa City,” one shopper said.
“I will not shop at Hobby Lobby.”
Others reminisced on their memories of working at the Burlington store.
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A fan said their first job was at the outlet, revealing they returned after finishing their college degree.
Crafts fans have branded the news horrible and said they welcomed being able to shop at a local store.
Jo-Ann has been part of the retail scene for decades, and the company has a portfolio of more than 800 stores.
BANKRUPTCY FILING
But it was plagued with financial difficulties, culminating in a bankruptcy filing earlier this year.
Bosses blamed a drop in sales after the end of the pandemic and competition from online companies.
They revealed rising freight costs also had an impact on the company.
Execs filed for bankruptcy in March, and the company had debts of around $1.1 billion.
Around $500 million of the debt has been canceled, and no stores were closed during the process.
LOOKING FORWARD
After the chain exited bankruptcy, Chris DiTullio, the interim chief executive officer, seemed to offer a positive outlook.
“We see great opportunities ahead for this business and are as committed as ever to our customers, team members, and communities nationwide,” he said.
DiTullio offered a positive outlook just a year after Wade Miquelon, the chain’s former CEO, admitted that 2023 had been challenging.
No Jo-Ann stores closed during the bankruptcy process, but other chains have not been as fortunate.
Hundreds of Big Lots stores across the nation have slammed shut after execs filed for bankruptcy in September.
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Bosses of the family-favorite restaurant chain TGI Fridays have closed more than 100 restaurants over the past year.
The iconic fashion chain Esprit is going out of business in the US, closing all 80 locations, while The U.S. Sun reported how a Giant supermarket in Philadelphia will be going to the wall.
US braces for ‘45,000 store closures’
Some 45,000 brick-and-mortar stores could close in the next five years, experts have warned.
Several major retailers have announced store closures or gone out of business altogether in recent years.
Chains such as Foot Locker, Sally Beauty, Tuesday Morning, Shore City, Z Gallerie, and Mitchell Gold + Bob Williams have all gone out of business.
Bed Bath & Beyond has closed all of its brick-and-mortar stores and is now an online-only retailer.
The most affected retailers have been clothing, consumer electronics, sporting goods, hobby, book, music, and home furnishing stores since the start of 2019.
UBS has predicted the total number of retail stores will drop by 45k from 958k to 913k.
Despite that, the report says that certain stores should thrive while others decline.
It said retailers such as Walmart, Costco, Home Depot, and Target, could be among the winners.