By Sara Beth Williams–
Amid a surge of retail closures announced over the last year, another decades-old retailer has been spared closure in Citrus Heights.
JOANN, an 82-year-old fabric and craft retailer, announced in mid-January it has filed for Chapter 11 bankruptcy for the second time within 12 months. The company is closing multiple stores across six states, according to USA Today, but zero closures are listed for stores located in California.
JOANN in Citrus Heights is located in the Sunrise Village shopping center at the corner of Sunrise Boulevard and Madison Avenue, which underwent a major remodel in 2021 and 2022. Following the remodel of the shopping center, JOANN moved from one building to another and reopened in March 2022.
Since the shopping center’s revitalization, the plaza has seen multiple new tenants, including Club Studio Fitness, which opened in September 2024, and Amazon Fresh, which opened in November 2024. Previously, JOANN occupied the building that is now Amazon Fresh.
JOANN originally announced in March 2024 that it had filed for bankruptcy protection in Delaware, reporting at least $1 billion in debt. National news outlets reported the company secured $132 million in new financing, which was expected to reduce its total debt by about $500 million. On Jan 15, the Ohio-based retailer announced the second bankruptcy filing.
“Since becoming a private company in April [2024], the Board and management team have continued to execute on top- and bottom-line initiatives to manage costs and drive value,” Michael Prendergast, Interim Chief Executive Officer of JOANN, said in the press release. “However, the last several years have presented significant and lasting challenges in the retail environment.” Prendergast also cited “constrained inventory levels” as influential in the decision to undergo a “court supervised sale process.”
“We hope that this process enables us to find a path that would allow JOANN to continue operating as a going concern,” Prendergast said.
JOANN is located at 5489 Sunrise Blvd. in Citrus Heights.
Amid a surge of retail closures announced over the last year, another decades-old retailer has been....
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