Future of Joann Fabric and Crafts Unknown

By Sabrina DammsiBerkshires Staff
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PITTSFIELD, Mass. — The future is uncertain for Joann Fabric and Crafts and the store that's been in the Dalton Avenue Shopping Center for more than 30 years.
 
The well-known national retailer that has served sewers, quilters, crocheters, and crafters for more than 80 years filed for Chapter 11 bankruptcy last week for a second time. 
 
The approximately 800 stores across the United States and online businesses are still operational, including one on Dalton Avenue and in Hadley. There are also several in New York State's Capital District and it also had a store in North Adams in the 1990s. The chain was better known as Jo-Ann's for decades.
 
"Since becoming a private company in April, the board and management team have continued to execute on top and bottom-line initiatives to manage costs and drive value," said Michael Prendergast, Jo-Ann's interim CEO, in a press release. 
 
"However, 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." 
 
Prendergast said this course of action was determined to maximize the business's value after reviewing all the available strategic paths.
 
"We hope that this process enables us to find a path that would allow Jo-Ann to continue operating as a going concern," he said in the press release. 
 
The business has a "stalking horse" bidder, Gordon Brothers Retail Partners LLC, which sets the floor for the auction process. 
 
Gordon Brothers has indicated an intention to liquidate the company by having going-out-of-business sales at all store locations. 
 
According to a Customer Frequently Asked Questions form, Jo-Ann Fabric and Crafts continues to actively solicit alternate bids and has received inquiries from parties potentially interested in continuing to operate Joann stores and online businesses. 
 
Last year, the company filed for Chapter 11 to address its capital structure. 
 
However, following this restructuring last year, it continued to "experience significant and lasting challenges in the retail environment."
 
These challenges, coupled with its "financial position and constrained inventory levels," "forced" officials to take this step. 
 
More information here. 
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Neal Tours Berkshire Innovation Center as Pittsfield's Tech Economy Grows

By Sabrina DammsiBerkshires Staff
PITTSFIELD, Mass. —Congressman Richard Neal visited the Berkshire Innovation Center Thursday to highlight $735,000 in federal funding secured for a new cybersecurity training and testing facility.
 
"The number one job of the federal government is to provide for the security of its people. I mean, we should never lose sight of that, whether it's China or Russia, every single day there are these belligerents that are attempting to infiltrate national security here in the United States, and we should not be naive about it," Neal said. "I mean, we can have an argument about proportionality; we can do a lot of different things, but not to miss the point of what they're trying to do every day."  
 
The new cybersecurity facility will provide regional manufacturers and businesses with research and design equipment, specialized lab space, and training facilities and is planned to be housed in a to-be-redeveloped space across the street from the Berkshire Innovation Center (BIC), located at 45 Woodlawn Ave.
 
The derelict property, formerly owned by General Electric, is now known as the William Stanley Business Park.
 
The project is a $7.2 million dollar investment from the state, $5.2 million from the tech collaborative, $2 million from bond funding secured by Neal, and $1 million that will be split into two phases: $500,000 for BIC to begin building and $500,000 for Myrias Optics to start production in Pittsfield, said Mayor Peter Marchetti. 
 
BIC Executive Director Ben Sosne said manufacturers often highlight the need for help with cybersecurity, particularly in meeting the security requirements necessary to conduct business with General Dynamics and other major contractors.
 
Collaborators in the field and the public sector have recognized the need that has only grown since technology has advanced and is a great career opportunity, Sosne said. 
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