Joann, the popular fabric and crafts retailer, announced plans to shutter approximately 500 of its 800 stores across the United States as part of its Chapter 11 bankruptcy restructuring process.
The Hudson, Ohio-based company, which filed for bankruptcy in March 2024 with debt between $1 billion and $10 billion, cited increased shipping costs and declining consumer demand as key factors behind their financial challenges. This move is part of a broader trend in retail, with several major chains scaling back operations or filing for bankruptcy amid growing competition from online shopping platforms.
The store closures will impact locations in nearly every state, with California seeing the highest number at almost 60 locations. Other states heavily affected include Florida, Illinois, Massachusetts, Maryland, Michigan, Minnesota, New York, Pennsylvania, and Texas. In Kansas, three stores will close in Salina, Lawrence, and Wichita.
Going-out-of-business sales at affected locations are scheduled to begin Saturday, February 15, and may continue for several months. While the company continues operations both in stores and online, gift cards will only be accepted for in-store purchases.
"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 company spokesperson stated. The decision on which locations to close was based on store performance analysis and strategic planning.
The retailer, which has served creative enthusiasts for over 80 years, currently employs 19,000 people across 49 states. During the restructuring process, team members will continue receiving pay and benefits as the company works to stabilize its operations.
The closure announcement follows Joann's entry into Chapter 11 protection in Delaware this January, marking its second bankruptcy filing within a year. The company's restructuring motion awaits court approval at a hearing scheduled for Friday, February 14.