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JOANN Fabrics and Crafts to Close Visalia Distribution Facility, Shedding 209 Jobs
Edward Smith updated website photo 2024
By Edward Smith
Published 5 months ago on
January 30, 2025

JOANN Fabrics and Crafts will close its Visalia distribution center on March 31, laying off 209 employees. (GV Wire Composite/Paul Marshall)

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After two bankruptcies in less than a year, JOANN Fabrics will close its Visalia distribution center, according to the California Employment Development Department.

The company announced in a WARN report that it would close the warehouse on March 31 and lay off 209 employees. The Business Journal first reported the layoffs.

The closure comes after the craft store giant entered Chapter 11 bankruptcy on Jan. 15. The company is trying to find a buyer, according to a news release. Retail stores would remain open throughout the process.

“The last several years have presented significant and lasting challenges in the retail environment, which, coupled with our financial position and constrained inventory levels, forced us to take this step,” said Michael Prendergast, interim CEO of JOANN. “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.”

Employees affected by the closure can reach out to the Tulare County Workforce Investment Board for assistance with unemployment benefits and job opportunities.

Gordon Brothers Group is the lead bidder. Gordon Brothers notably acquired Polaroid in 2009, selling it in 2017. Bed Bath & Beyond, CompUSA, KB Toys, The Sharper Image, and Borders were all liquidated under Gordon Brothers.

January Bankruptcy Second One for JOANNs in Less Than a Year

Private equity firm Leonard Green & Partners purchased the chain in 2010 for $1.6 billion, after the group bought J Crew Group Inc. just the year before, according to Reuters.

At the time, JOANN lead director Scott Cowen said it was not seeking a deal.

The purchase took JOANN off the stock market, but Leonard Green took it public again in 2021.

Three years later, JOANN declared bankruptcy, and the company went private in April 2024. The January bankruptcy marks the second proceeding for the 82-year-old retailer in less than a year. Prendergast in his statement thanked the thousands of employees at the chain.

“The company intends to uphold its commitments to customers, team members, and partners, including continued payment of employee wages and benefits,” the report stated.

The company opened its 630,000-square-foot Visalia center in 2001, according to a history of the company on Cleveland.com.

JOANN operates a retail store in Fresno. The company did not respond to further questions.

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Edward Smith,
Multimedia Journalist
Edward Smith began reporting for GV Wire in May 2023. His reporting career began at Fresno City College, graduating with an associate degree in journalism. After leaving school he spent the next six years with The Business Journal, doing research for the publication as well as covering the restaurant industry. Soon after, he took on real estate and agriculture beats, winning multiple awards at the local, state and national level. You can contact Edward at 559-440-8372 or at Edward.Smith@gvwire.com.

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