Joann to Close 500 Stores Amid Bankruptcy Struggles
Fabric and craft retailer Joann is set to shut down 500 of its 800 stores across the United States in the coming months as it moves through the bankruptcy process.
In a statement, the company described the decision as a necessary step to stabilize its operations. “Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward,” a Joann spokesperson said, acknowledging the impact on employees, customers, and local communities.
While the company did not release a full list of affected locations, court filings indicate that stores in all 50 states will be impacted, with significant closures in California, Florida, Indiana, Michigan, New York, Pennsylvania, and Washington.
This marks Joann’s second bankruptcy filing in less than a year. The retailer initially filed for Chapter 11 in March 2024 but quickly emerged as a private company while keeping all locations open. However, in its most recent filing, Joann cited severe inventory disruptions that led to financial instability.
As the company explores a potential sale, court documents reveal that a number of underperforming stores were identified as unlikely to be included in any acquisition deal.
Joann’s struggles reflect broader challenges facing brick-and-mortar retailers as consumer spending shifts. Inflation has led many shoppers to cut back on discretionary purchases, while brands that saw a pandemic-era surge are now grappling with declining demand.
The closures add to a growing trend in the retail industry, with chains like Kohl’s and Macy’s also shutting down locations. Analysts predict that over 15,000 stores could close in 2025, more than doubling last year’s total, according to Coresight Research.
