Joann, the bankrupt fabrics retailer, is shuttering 500 of its 800 store
Joann, the fabrics and crafts retailer, will be closing more than half of its 800 stores in the coming months as it works its way through bankruptcy.
About 500 stores throughout the United States are being shuttered, the retailer told CNN in a statement, adding that “right-sizing our store footprint is a critical part of our efforts to ensure the best path forward.”
“It was a very difficult decision to make, knowing the significant impact it will have on our team members, our customers, and all of the communities we operate in,” a Joann spokesman said.
The company’s statement did not include a detailed list of closings, but court documents show stores closing in all 50 states — California, Florida, Indiana, Michigan, New York, Pennsylvani,a and Washington are among those hit hardest by the closings.
The latest cut to its footprint follows Joann’s bankruptcy filing last month — its second in less than a year. The retailer initially filed for Chapter 11 in March 2024, then emerged a few weeks later as a private company and continued to operate all of its stores.
In its second bankruptcy filing last month, Joann cited inventory problems that it described as “acute and unexpected.” The company had previously disclosed in court filings that it had experienced an “unexpected ramp-down, and, in some cases, the complete cessation of production” of some key products.
At the time, the company was also searching for a buyer, it said. “In light of the sale process and the continued diligence of, and refinement of potential bids by, prospective bidders, the debtors and their advisors were able to isolate a subset of underperforming stores that are not likely to be bid on as part of a going concern bid or added to any going concern bid,” court papers filed recently state.
Joann follows a growing list of struggling brick-and-mortar retailers that can’t find a way to be financially viable in a changing consumer environment. Inflation has prompted many Americans to cut back on discretionary purchases.
Meanwhile, across all retail, certain brands that had been on a decline before 2020 were treated to a pandemic and post-pandemic shopping boom. But as shopping patterns return to normal, some of those brands are now on their way back down that road to bankruptcy.
Other retailers closing stores this year include its rival Joann, Kohl’s, and Macy’s. In all, over 15,000 stores are projected to shutter in 2025 — more than twice as many as last year, according to Coresight Research.
