By Jordan Valinsky | CNN
New York — Joann, the fabrics and crafts retailer, is closing more than half of its 800 stores in the coming months as it continues to navigate the bankruptcy process.
Approximately 500 stores across the United States are closing, the retailer said in a statement to CNN, saying that “right-sizing our store footprint is a critical part of our efforts to ensure the best path forward.”
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“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,” a Joann spokesperson said.
Although the company’s statement did not provide a specific list of locations, court filings reveal stores are closing in all 50 states — with California, Florida, Indiana, Michigan, New York, Pennsylvania and Washington among those most heavily affected by the closures.
The major reduction in its footprint comes after Joann filed for bankruptcy last month for the second time in less than a year. The retailer first filed for Chapter 11 in March 2024, but it emerged a few weeks later as a private company and kept all of its stores open.
In its second bankruptcy filing last month, Joann blamed inventory issues that were “acute and unexpected.” The company had previously revealed in court documents that it faced an “unexpected ramp-down, and, in some cases, the entire cessation of production” of some critical products.
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The company also said it at the time it was looking for a buyer. Newly filed court documents reveal that as the “sale process progressed, and prospective bidders continued to conduct diligence and refine their potential bids, the debtors and their advisors were able to identify a subset of underperforming stores that are unlikely to be considered or included in any going concern bid.”
Joann joins a growing list of struggling brick-and-mortar stores that are unable to stay financially viable in a changing consumer environment. Many Americans have dialed back discretionary purchases in response to inflation.
Meanwhile, overall in retail, some brands that were on a downward trajectory before 2020 enjoyed a pandemic and post-pandemic shopping boom. But as normal shopping patterns return, some of those brands are now headed back down that path to bankruptcy.
Beyond Joann, other retailers shuttering locations this year include Kohl’s and Macy’s. In total, more than 15,000 stores are expected to close in 2025 — more than double the amount last year, according to Coresight Research.
The-CNN-Wire
