Happy New Year 2025

Tag: Retailer

Major crafts retailer Joann plans to close hundreds of locations

Coresight Research estimates there will be another wave of retail closures in 2025 as legacy companies face relentless competition.

Joann Inc., which filed for Chapter 11 bankruptcy protection in January for the second time in less than a year, is planning to close hundreds of its stores as it tries to right-size its footprint.

The retailer filed a motion this week seeking the court’s authority to begin closing 500 of its stores across the nation as it proceeds with the Chapter 11 process. If approved, the company said going-out-of-business sales will begin at impacted stores as soon as Saturday, and could continue for several months thereafter.

A company spokesperson told FOX Business that the closures are part of the company’s strategy in maximizing the value of its business.

MAJOR CRAFTS RETAILER FILES FOR BANKRUPTCY

“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,” the spokesperson said.

In March 2024, when the company filed for Chapter 11 for the first time after 81 years in business, it became a private company, but didn’t shutter any of its over 800 locations across 49 states.

A customer enters a Joann store in El Cerrito, California, on Jan. 8, 2025. Joann Inc. (David Paul Morris/Bloomberg via Getty Images / Getty Images)

In January, the company filed for bankruptcy protection in U.S. Bankruptcy Court for the District of Delaware with the hopes of selling itself to another company after contending with a challenging retail environment, coupled with sagging sales and constrained inventory levels.

LEASES FOR NEARLY 700 PARTY CITY LOCATIONS TO BE AUCTIONED OFF

“After carefully reviewing all available strategic paths, we have determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business,” interim CEO Michael Prendergast said when the company filed for the second time. “We hope that this process enables us to find a path that would allow Joann to continue operating as a going concern.”

The retailer filed a motion seeking the court’s authority to begin closing 500 of its stores across the nation as it proceeds with the Chapter 11 process. (Tim Leedy/MediaNews Group/Reading Eagle via Getty Images / Getty Images)

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The company sought court approval last month to start a process for the sale of substantially all of its assets to Gordon Brothers Retail Partners LLC. Gordon would serve as the “stalking horse” bidder, which is a party that agrees to make an initial bid for the assets of the bankrupt company, often before a formal auction process begins.

Gordon Brothers has indicated that it intends to pursue a liquidation of the company and conduct going out-of-business sales at all store locations, according to Joann, which is continuing to actively solicit alternate bids.

It said it has received inquiries from parties potentially interested in continuing to operate the stores and online businesses on an ongoing basis.

If other qualified bids are submitted during the court-supervised sale processes, Joann plans to conduct an auction or auctions, with the stalking horse bid setting the floor for the auction processes.

Here are the stores closing in each state:

February 13, 2025
Major craft retailer Joann plans to close hundreds of locations

Coresight Research estimates there will be another wave of retail closures in 2025 as legacy companies face relentless competition.

Joann Inc., which filed for Chapter 11 bankruptcy protection in January for the second time in less than a year, is planning to close hundreds of its stores as it tries to right-size its footprint.

The retailer filed a motion this week seeking the court’s authority to begin closing 500 of its stores across the nation as it proceeds with the Chapter 11 process. If approved, the company said going-out-of-business sales will begin at impacted stores as soon as Saturday, and could continue for several months thereafter.

A company spokesperson told FOX Business that the closures are part of the company’s strategy in maximizing the value of its business.

MAJOR CRAFTS RETAILER FILES FOR BANKRUPTCY

“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,” the spokesperson said.

In March 2024, when the company filed for Chapter 11 for the first time after 81 years in business, it became a private company, but didn’t shutter any of its over 800 locations across 49 states.

A customer enters a Joann store in El Cerrito, California, on Jan. 8, 2025. Joann Inc. (David Paul Morris/Bloomberg via Getty Images / Getty Images)

In January, the company filed for bankruptcy protection in U.S. Bankruptcy Court for the District of Delaware with the hopes of selling itself to another company after contending with a challenging retail environment, coupled with sagging sales and constrained inventory levels.

LEASES FOR NEARLY 700 PARTY CITY LOCATIONS TO BE AUCTIONED OFF

“After carefully reviewing all available strategic paths, we have determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business,” interim CEO Michael Prendergast said when the company filed for the second time. “We hope that this process enables us to find a path that would allow Joann to continue operating as a going concern.”

The retailer filed a motion seeking the court’s authority to begin closing 500 of its stores across the nation as it proceeds with the Chapter 11 process. (Tim Leedy/MediaNews Group/Reading Eagle via Getty Images / Getty Images)

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The company sought court approval last month to start a process for the sale of substantially all of its assets to Gordon Brothers Retail Partners LLC. Gordon would serve as the “stalking horse” bidder, which is a party that agrees to make an initial bid for the assets of the bankrupt company, often before a formal auction process begins.

Gordon Brothers has indicated that it intends to pursue a liquidation of the company and conduct going out-of-business sales at all store locations, according to Joann, which is continuing to actively solicit alternate bids.

It said it has received inquiries from parties potentially interested in continuing to operate the stores and online businesses on an ongoing basis.

If other qualified bids are submitted during the court-supervised sale processes, Joann plans to conduct an auction or auctions, with the stalking horse bid setting the floor for the auction processes.

Here are the stores closing in each state:

February 13, 2025
Retailer Fashion Nova suppressed negative online reviews, $2.4M going to customers

FTC director of public affairs Douglas Farrar reacts to Albertsons suing Kroger after a judge ruled against the grocery merger on ‘The Big Money Show.’

The Federal Trade Commission (FTC) is issuing over 148,000 refunds totaling nearly $2.4 million in a settlement order involving online fast fashion retailer Fashion Nova, which is accused of hiding negative reviews.

To qualify for the refund, consumers who purchased items from Fashion Nova before Nov. 21, 2019, had to make a “valid claim” with the FTC before the August 15, 2023, deadline. Currently, the FTC is no longer accepting claims in the matter.

In the final order, Fashion Nova is explicitly prohibited from hiding reviews or endorsements, and is obligated to present them to customers “regardless of the endorser’s opinion or rating.” Additionally, the retailer was ordered to pay $4.2 million.

A view of the atmosphere at Fashion Nova Presents: Party With Cardi at Hollywood Palladium on May 8, 2019, in Los Angeles. (Tommaso Boddi/Getty Images for Fashion Nova)

FASHION NOVA SUED FOR COPYING JENNIFER LOPEZ’S ICONIC VERSACE DRESS

While recipients of the FTC payments in this case were spread out across the country, according to the commission’s data, Illinois had the largest number of recipients with more than 25,000. Among the 148,351 recipients, the median refund was $16, according to the FTC.

The FTC made its allegations against Fashion Nova in January 2022, kicking off the first-of-its-kind case.

“From as early as late 2015 through mid-November 2019, Fashion Nova chose to have four- and five-star reviews automatically post to the website, but did not approve or publish hundreds of thousands lower-starred, more negative reviews,” the FTC wrote in its complaint against Fashion Nova.

The FTC claimed to have found “numerous instances” in which Fashion Nova “suppressed product reviews with ratings lower than four stars,” making the representation of their products “false or misleading.”

The FTC claimed to have found “numerous instances” in which Fashion Nova “suppressed product reviews with ratings lower than four stars.” (iStock / iStock)

FTC GRANTS CHAIRMAN ANDREW FERGUSON AUTHORITY TO COMPLY WITH TRUMP’S ORDERS TO END DEI PROGRAMS

While this case was the FTC’s first involving negative reviews, it was not the commission’s first case involving Fashion Nova. In April 2020, the fast fashion retailer agreed to pay $9.3 million over allegations “that it didn’t properly notify consumers and give them the chance to cancel their orders when it failed to ship merchandise in a timely manner, and that it illegally used gift cards to compensate consumers for unshipped merchandise instead of providing refunds.”

Additionally, in 2022, the FTC put several companies offering review management on notice, informing them that “avoiding the collection or publication of negative reviews violates the FTC Act.”

Signage stands outside the Federal Trade Commission headquarters in Washington, D.C., in 2019. (Andrew Harrer/Bloomberg via Getty Images / Getty Images)

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In its guide to featuring online customer reviews, the FTC instructs companies to not “prevent or discourage” consumers from submitting negative reviews. While a “reasonable process” to ensure reviews are genuine is allowed, the FTC tells businesses to “treat negative and positive reviews equally.”

February 5, 2025