Joann Fabrics and Crafts, one of the most recognizable names in the fabric and crafts retail space, has announced the closure of 500 stores across the United States. This decision comes in the wake of the company’s second Chapter 11 bankruptcy filing within a year. The closures will significantly impact states such as California, Florida, Illinois, Massachusetts, Michigan, Ohio, and Pennsylvania, reflecting broader challenges in the retail industry.
Joann first filed for Chapter 11 bankruptcy protection in March 2024, aiming to restructure its growing debt and streamline operations. However, despite efforts to stabilize its finances, persistent inventory shortages, declining consumer demand, and an unstable economy led to another bankruptcy filing in January 2025. Interim CEO Michael Prendergast cited these factors as primary reasons for the company’s ongoing financial difficulties.
Joann Fabrics Bankruptcy Filing: Reasons Behind the Store Closures
Joann Fabrics faced a series of financial and operational challenges that ultimately forced the company to rethink its business strategy. Inventory shortages and sluggish economic recovery made it increasingly difficult for Joann to keep up with evolving consumer demands. The company struggled to maintain adequate stock across its 800 locations, which affected sales and profitability.
Furthermore, the rise of e-commerce and changing consumer preferences in the retail industry placed additional pressure on Joann’s traditional brick-and-mortar business model. To counteract these challenges, the company is now focusing on a court-supervised sale process, with interest from major players like Gordon Brothers Retail Partners.
Impact on Joann Fabrics Stores Nationwide
The decision to close 500 Joann stores will have a far-reaching impact on customers and employees alike. California is among the hardest-hit states, with nearly 60 locations set to shut down. Other states such as Florida, Illinois, Massachusetts, Michigan, and Ohio will also see a significant reduction in store presence.
For instance, in Texas, Joann Fabrics is closing multiple locations in the Houston area. In the Bay Area of California, around a dozen stores will be affected. Connecticut is also facing closures, with ten locations expected to shut down. Customers are encouraged to check the Joann restructuring website for the full list of store closures and additional information.
How Joann Plans to Navigate Its Future
Despite the setbacks, Joann Fabrics is determined to maximize the value of its business through the ongoing court-supervised sale process. While this move will reduce its physical footprint, it is seen as a necessary step to adapt to the changing retail environment and ensure long-term sustainability.
In the meantime, Joann’s loyal customer base can still shop online and at unaffected stores across the country. The company continues to emphasize its commitment to providing high-quality fabrics and craft supplies to its customers, even as it navigates these significant changes.
What Customers Should Know About the Closures
For those wondering if their local Joann Fabrics store is affected, the company has published an official list of stores that will be closing. Customers are encouraged to visit the company’s restructuring website or contact their local store for more information.
It’s important to note that these closures reflect broader challenges faced by many traditional retailers. As consumer preferences shift and e-commerce continues to grow, companies like Joann must innovate to remain competitive in the evolving market.
Conclusion
Joann Fabrics’ decision to close 500 stores marks a significant turning point for the company. While these closures are undoubtedly challenging for employees and customers, they represent a strategic move to help the company adapt to a rapidly changing retail landscape.
With plans for a court-supervised sale and a focus on optimizing its remaining store network, Joann aims to emerge stronger in the long run. Customers can continue to rely on Joann’s online store and unaffected locations for all their fabric and craft needs during this transition period.
Stay tuned for updates as Joann navigates this complex restructuring process and reshapes its future in the retail industry.
