Joann to Close 500 Stores Nationwide Amid Bankruptcy Challenges
Joann, the crafts and fabrics retailer, is closing over half its 800 U.S. locations as it navigates the bankruptcy process for the second time in under a year. About 500 stores will be closed, a move Joann deems “critical” to right-sizing its footprint and salvaging the remainder of its business. The retailer attributes its most recent Chapter 11 filing largely to severe inventory disruptions, which executives say caused an “unexpected ramp-down or cessation” of production on some key items.
Court documents reveal that underperforming stores in all 50 states are set to close, with states like California, Florida, and New York among those most heavily affected. Joann had previously kept all stores running after its initial bankruptcy in March 2024, but the company’s dire financial situation now forces it to offload locations and search for a buyer.
Though store closures come at a cost to local communities and employees, Joann maintains it will emerge leaner and more capable of sustaining ongoing operations. With consumer spending on crafts softening and discretionary budgets tightening nationwide, the company’s second restructuring reflects broader struggles in brick-and-mortar retail.
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