A POPULAR discount retailer has scooped up 45 Joann locations as the company eyes May as its final month in business.
With Joann stores now closing down rapidly, and the spaces going wanting, one retailer has swooped in.
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The US Sun recently reported on the news that 255 Joann stores are set to close by the end of April, with the remaining ones to be gone by the end of May.
This means that hundreds of stores will be closing down over the coming weeks.
A massive shutdown like this leaves a nice opportunity for incoming retailers to take over the spaces.
Well, one popular retailer has already stepped up.
Retail Dive reports that Burlington is set to take on 45 of Joann’s expiring leases in May and June.
A Monday court filing confirmed that these locations will come in major US states such as California and Texas.
Burlington could end up paying over $50,000 for the 45 locations.
At the same time, Hobby Lobby and Boot Barn are also set to take over some spots, though it is currently unclear how many.
The US Sun has reached out to both Hobby Lobby and Boot Barn for comment.
AGGRESSIVE MOVES
Experts believe that competition needs to start perusing the closing Joann spots aggressively.
Analysts from the investment bank Evercore said: “Our recent conversations with real estate contacts suggest very little new shopping center growth is planned in the US for the foreseeable future — meaning chains with high store growth ambitions, like [Burlington], will need to be aggressively going after locations from retail bankruptcies along the way.”
Burlington is doing just that, as it opened 101 net new stores in 2024 and relocated 31 older, oversized locations, according to a company press release.
In its fourth quarter of 2024, net sales rose 4.8% year over year to almost $3.3 billion.
Meanwhile, Burlington’s net income increased 14.6% to $260.8 million.
But caution has been stressed by chiefs who are still uncertain about the economic outlook for 2025, with the company’s CEO, Michael O’Sullivan dubbing the future “uncertain”.
JOANN’S HISTORY OF PROBLEMS
Joann’ fully going out of business will not come as much of a surprise, given that it filed for bankruptcy twice within a year.
Despite emerging as a private company after its first filing, it was forced into the same position in January 2025.
Chiefs blamed persistent supply chain issues as one of the main reasons for the final closure decision.
A spokesperson for JoAnn said: “This was a very difficult decision to make, given the major impact we know it will have on our Team Members, our customers and all of the communities we serve.
“A careful analysis of store performance and future strategic fit for the Company determined which stores should remain operating as usual at this time.
BRANDS HARD HIT BY BANKRUPTCIES
Many chains have struggled to adapt to a post-Covid retail landscape, with several companies filing for bankruptcy
“Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for JOANN.”
Those wanting to take advantage of the massive 70% closing down sales at still open Joann stores can do so right now.
However, The US Sun has revealed that the company is no longer accepting online payments.
As a result, shoppers are being warned to keep an eye out for fraudulent websites claiming to be Joann.
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