Three Joann fabric and craft stores in Southwest Florida will be closing their doors.
The big box craft chain based in Hudson, Ohio, is closing its North Naples store at 6424 Naples Blvd., the Estero store at Coconut Point and the Fort Myers store in South Plaza on Cleveland Avenue. Meanwhile, the North Fort Myers store will remain open.
Joann is closing about 500 of its 800 stores nationwide, including 36 in Florida.
“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,” company officials said.
On Feb. 14, a bankruptcy judge gave the company the go-ahead to begin closing stores.
The closures will occur over the next few months, although some stores may close within a shorter or longer time period, according to the company.
Joann filed for Chapter 11 bankruptcy Jan. 15, the second time within a year. Chapter 11 allows businesses to reorganize their finances and continue operating.
“The last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step,” Michael Prendergast, interim chief executive officer of Joann, said in a release.
It’s seeking to sell its assets, according to its Jan. 15 filing. The company has one bidder, Gordon Brothers Retail Partners, but is seeking alternative bids. The company will hold an auction if others make a bid.
Gary Tasman, CEO and principal broker at Cushman & Wakefield Commercial Property Southwest Florida, doesn’t think it will be a problem to find new tenants because they are located in areas that have strong demographics.
“My expectation is in six to 12 months you will see the locations have another use,” he said.
The possible uses are many, he said. Health care, such as an outpatient client is one idea, he said.
Amazon, experimenting with brick-and-mortar stores, could fill a space or a big box store that is better positioned than Joann, Tasman said. One store that probably won’t be seen is a grocery store, he said.
