Joann stores closing

 

Joann, the Bankrupt Fabrics Retailer, Closing 500 of Its 800 Stores

Joann, the well-known fabrics and crafts retailer, is set to close more than half of its 800 stores across the United States in the coming months as part of its ongoing bankruptcy process.

In a statement to CNN, Joann confirmed that approximately 500 stores will shut down, calling the move a “critical part of our efforts to ensure the best path forward.”

“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 Joann spokesperson said.

While Joann did not release a specific list of affected locations, court filings indicate that closures will occur in all 50 states, with states such as California, Florida, Indiana, Michigan, New York, Pennsylvania, and Washington seeing significant reductions in store numbers.

A Second Bankruptcy in Less Than a Year

This latest round of closures follows Joann’s second bankruptcy filing in less than a year. The company first filed for Chapter 11 in March 2024 but managed to emerge a few weeks later as a private company while keeping all its stores open.

However, in its second bankruptcy filing last month, Joann cited unexpected inventory issues, including an “unexpected ramp-down, and, in some cases, the entire cessation of production” for key products.

The retailer had also been searching for a buyer, but new court documents reveal that prospective bidders identified a subset of underperforming stores that were unlikely to be included in any acquisition deal.

Retail Industry Struggles Continue

Joann is just one of many brick-and-mortar retailers struggling to adapt to changing consumer habits. Inflation and shifting shopping patterns have led many Americans to cut back on discretionary spending, impacting businesses that rely heavily on non-essential purchases.

Several other major retailers are also facing store closures. In addition to Joann, both Kohl’s and Macy’s have announced plans to shut down locations this year. According to Coresight Research, more than 15,000 stores are expected to close in 2025—more than double the number from the previous year.

As Joann navigates this challenging financial landscape, customers and employees alike are left facing the uncertainty of the company’s future and the broader changes sweeping through the retail industry.