Joann Closing 500 Stores

Joann (Hudson, Ohio) is closing 500 of its 800 stores in the coming months as it seeks to emerge from Chapter 11 bankruptcy, report a variety of news sources, including CNN.com.

In a statement to that news service, the fabrics/crafts retailer said that “right-sizing our store footprint is a critical part of our efforts to ensure the best path forward.”

Court filings related to the retailer’s ongoing bankruptcy reorganization show stores are closing in all 50 states — with California, Florida, Indiana, Michigan, New York, Pennsylvania and Washington among those most heavily impacted.

The major reduction in its footprint comes on the heels of Joann filing for bankruptcy last month for the second time in less than a year. The retailer first filed for Chapter 11 in March 2024, but emerged a few weeks later as a private company and kept all its stores open.

In its more recent filing, CNN reports, the company said it was looking for a buyer. Subsequent court documents showed 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.”