After more than 80 years in business, Joann (formerly known as Jo-Ann Fabrics), a
nationwide chain selling fabric and craft supplies, has announced it is closing all of its
stores. The chain has approximately 800 stores in 49 states. The announcement comes
after filing for bankruptcy twice in one year. After the first bankruptcy, the chain
attempted to reorganize and restructure to remain in business. However, when that
didn’t work, the company was sold off and the new owners are planning to hold
liquidation sales to offload the remaining inventory and assets.
After losing significant market share to online retailers and its other long-time
competitors, Michaels and Hobby Lobby, the chain attempted to downsize. The initial
plan was to close 60 percent of its stores and focus on making the remaining locations
profitable. Instead, a year later, it decided to throw in the towel all together.
Discussion Questions:
1) Which variables in a Joann store would be considered fixed and which would be
considered variable?
2) At what point does a firm decide to close down completely?
Sources| NPR: https://www.npr.org/2025/02/25/nx-s1-5307907/joann-closing-stores-bankruptcy; Unsplash: Photo by Cristi Ursea on Unsplash