JoAnn Fabric and Crafts, commonly known as JOANN Stores had a CreditRiskMonitor FRISK Score of 1 in 2023, indicating a high likelihood of bankruptcy. Despite a jump in sales during the pandemic, the company has struggled to maintain momentum, resulting in a 2.1% decline in net sales and a deeper net loss in the second quarter of 2023.
With over $1 billion in debt and rising interest costs, JOANN is implementing cost-cutting measures, including layoffs, to navigate its difficult financial environment. The retailer's financial troubles coincide with leadership changes, with no CEO appointed following Wade Miquelon's retirement. While JOANN maintains confident about its survival, rising obstacles add to an uncertain future, with the potential of bankruptcy looming in the coming months.