Joann Fabrics, a well-known retailer in the crafts and fabrics industry, is closing approximately 500 of its 800 stores across the United States. This decision comes as part of the company’s ongoing bankruptcy proceedings, marking the second time Joann has filed for Chapter 11 protection in less than a year. The closures will affect stores in all 50 states, with significant impacts in California, Florida, Indiana, Michigan, New York, Pennsylvania, and Washington.
According to a statement from Joann, the decision to close these stores was difficult but necessary to “right-size” the company’s store footprint and ensure a viable future. The company cited “acute and unexpected” inventory issues and a shift in consumer spending habits as key factors contributing to its financial struggles. Many Americans have reduced discretionary spending due to inflation, affecting Joann and other brick-and-mortar retailers.
Joann initially filed for bankruptcy in March 2024, emerging as a private company while keeping all stores open. However, the second bankruptcy filing revealed that certain underperforming stores would not be included in any potential sale bids. As the company seeks a buyer, restructuring firm Gordon Brothers has emerged as a potential bidder, with plans to liquidate and close all stores if successful.
The closures are part of a broader trend in the retail industry, with over 15,000 stores expected to close in 2025, more than double the number from the previous year. Other retailers, such as Kohl’s and Macy’s, are also shuttering locations. Joann’s spokesperson acknowledged the significant impact on employees, customers, and communities, emphasizing the importance of strategic decisions to navigate the challenging retail environment.
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