Joann to Close 500 'Underperforming' Stores Nationwide After Filing for Bankruptcy

Joann, the financially troubled arts-and-crafts retailer, announced Wednesday that it was preparing to close 500 of its 800 remaining stores after its latest bankruptcy filing. The announcement came one month after the eight-decade-old company filed for bankruptcy for the second time in less than a year, as consumers pull back on spending. If the District of Delaware Bankruptcy Court gives its approval, the company said in a statement that it would shut underperforming stores across the country, from New York to Alaska. “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,” the company said in an emailed statement. Joann, whose outlets were once called Jo-Ann Fabrics, is based in Hudson, Ohio. The chain has long sold art supplies, such as yarn, sewing machines, fabrics and other seasonal products.

Struggling fabric and crafts seller Joann plans to close about 500 of its stores across the U.S. — or more than half of its current nationwide footprint. The move, announced Wednesday, arrives amid a tumultuous time for Joann. Last month, the Hudson, Ohio-based retailer filed for Chapter 11 bankruptcy protection for the second time within a year, with the company pointing to issues like sluggish consumer demand and inventory shortages. Joann previously sought Chapter 11 in March 2024 and later emerged as a private company. But after operational challenges continued to pile up, Joann filed for bankruptcy again in January. It’s now looking to sell the business — and maintained in a filing Wednesday that closing “underperforming” locations is necessary to complete that process.

Stores are set to close in all 50 states, with California, New York, Florida, Indiana, Michigan and Pennsylvania losing the most locations, according to court filings. The fabrics store had first filed for bankruptcy in March 2024, but emerged as a private company a few weeks later, keeping all of its stores open. Last month, Joann’s interim chief executive, Michael Prendergast, blamed the second bankruptcy filing on a challenging retail environment, as shoppers cut back on spending amid sticky inflation and sales fell. The company also blamed inventory issues that were “acute and unexpected,” according to the filing. Prendergast last month said the company was looking for a new buyer.