Joann Faces Financial Struggles, Announces 500 Store Closures

Joann, one of the largest fabric and craft retailers in the U.S., has officially announced the closure of 500 stores as part of its financial restructuring. This decision comes following the company’s Chapter 11 bankruptcy filing, marking the second time in less than a year that Joann has sought protection from creditors.

The closures will impact stores across the country, leaving customers concerned about the future of their favorite craft supply chain. With rising costs, supply chain disruptions, and declining sales, Joann is taking drastic steps to regain stability and keep a portion of its business running.

Why Is Joann Closing Stores?

Joann has cited multiple financial challenges as the primary reason for shutting down nearly two-thirds of its retail locations. Some key factors contributing to the decision include:

  • Declining sales – Changing shopping habits have affected in-store foot traffic.
  • Inventory shortages – Supply chain disruptions have made it difficult to keep shelves stocked.
  • Increased operational costs – Rising rents, labor expenses, and inflation have strained profitability.
  • Changing market trends – More consumers are shopping online for craft and fabric supplies, reducing the need for physical store locations.

Which Joann Locations Are Affected?

Joann has confirmed that the store closures will be nationwide, with a significant number of shutdowns in states like:

  • California
  • Florida
  • Indiana
  • Michigan
  • New York
  • Pennsylvania
  • Washington

States such as Connecticut are expected to see all Joann stores permanently shut down as part of the bankruptcy proceedings. Customers are advised to check their local Joann locations for updates on whether their stores will remain open or close in the coming months.

What’s Next for Joann?

Despite these closures, Joann has stated that it will continue operations at select locations and maintain an online presence to serve customers. The company is also seeking court approval to sell its assets, with Gordon Brothers Retail Partners LLC emerging as a potential buyer.

Joann is also actively seeking alternative bids in hopes of restructuring its business and preserving as many jobs as possible.

How Will This Affect Customers?

For customers who rely on Joann for their crafting and sewing supplies, the store closures will bring several changes:

  • Liquidation sales – Customers can expect significant discounts at closing locations.
  • Gift cards & rewards – It is recommended to use Joann gift cards and rewards before stores close.
  • Online shopping remains available – Joann.com will continue offering craft supplies for those affected by store shutdowns.
  • Alternative retailers – Shoppers may need to explore other craft stores such as Michaels, Hobby Lobby, or online marketplaces for their fabric and craft needs.

What This Means for Employees

With such a large number of store closures, thousands of Joann employees will be affected. The company has not yet confirmed how many job losses will occur, but layoffs are expected as stores close permanently. Employees are encouraged to stay informed about severance packages and potential job placement assistance.

Final Thoughts

Joann’s decision to shut down 500 stores is a major shift for the long-standing craft retailer. While the company hopes to stabilize its business through this restructuring, the closures will have a significant impact on customers, employees, and the crafting community as a whole.

Customers looking to take advantage of liquidation sales should act fast before stores shut their doors permanently. Stay tuned for more updates as Joann navigates its bankruptcy proceedings and finalizes store closures.

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