PHOTO BY MICHELLE OWNBEY
Joann has been located at 3051 Wabash Ave. since 2011, when it consolidated its two Springfield stores into the former Circuit City space.
Area residents were holding out hope that the Joann fabrics store in Springfield would survive the retailer's planned closures, but the company announced Feb. 24 that it will close all of its 831 stores nationwide.
In January, the Ohio-based retailer filed for Chapter 11 bankruptcy protection for the second time in a year, citing sluggish consumer demand and inventory shortages. Initially, Joann Inc. pledged to keep all of its stores open before announcing earlier this month that approximately 500 locations would close. However, the Springfield location was not on the list of stores slated for closure.
But according to a statement released by the company Feb. 23, financial services company GA Group, along with Joann's lenders, were the winning bidders to "acquire substantially all of Joann's assets" following a recent auction. The new owners then announced plans to begin winding down the company's operations and conduct going-out-of-business sales at all stores.
Joann initially had two stores in Springfield, one in the Capital City Shopping Center on Dirksen Parkway and another at 3137 S. Veterans Parkway. In 2011, the retailer closed both of those locations and moved into the former Circuit City space at 3051 Wabash Ave.
“Joann leadership, our board, advisors and legal partners made every possible effort to pursue a more favorable outcome that would keep the company in business,” read a statement posted on Joann's website. “We are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on all our stakeholders.”
