Major craft store in State College listed as one of 500 ‘underperforming ‘ locations set to close
A major craft store in State College is set to close, according to a court filing on Wednesday.
Joann, a fabric and crafts retailer located at 505 Benner Pike, State College, is listed as one of the hundreds of locations the craft retailer identified in a court filing Wednesday as “underperforming” stores it wants to immediately begin closing. A number of other Pennsylvania locations were on the list, including the Altoona and Johnstown locations.
With court approval, Joann anticipates going-out-business sales will begin at the impacted stores on Feb. 15, its website states, and could continue for several months. It is unclear how many employees will be affected at the State College location.
“This was a very difficult decision to make, given the major impact we know it will have on our Team Members, our customers and all of the communities we serve. A careful analysis of store performance and future strategic fit for the Company determined which stores should remain operating as usual at this time. Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for JOANN,” a spokesperson for Joann said in a written statement.
The company filed for Chapter 11 bankruptcy protection for the second time in a year last month, CNN reported, and about 500 stores across the United States are listed for closure in the most recent court filing.
In Joann’s bankruptcy filing last month it said it was looking for a buyer, according to CNN, but the court documents on Wednesday said, “As the sale process progressed, and prospective bidders continued to conduct diligence and refine their potential bids, the Debtors and their advisors were able to identify a subset of underperforming stores that are unlikely to be considered or included in any going concern bid.”
Joann is the second storefront to recently announce plans to close in the strip mall where it is located. In December, Big Lots announced its State College location will close after the company filed for bankruptcy.
