Joann Makes ‘Difficult Decision’ To Close 500 Stores Nationwide

Troubled fabrics and crafts retailer Joann is closing around 500 U.S. stores, just over half of its approximately 800 locations. As the company progresses through the bankruptcy process, downsizing its store footprint is critical “to ensure the best path forward.”

Joann has not explicitly stated the exact stores that are getting the ax. However, it appears from court documents that the closures will affect all 50 states, with the majority in California, Florida, New York, Pennsylvania, Michigan, Indiana, and Washington.

“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 company spokesperson said, per CNN.

Joann applied for Chapter 11 protection in January, which is actually its second filing in less than a year. The retailer previously claimed bankruptcy status in March 2024. A month later, the retailer exited bankruptcy as a private company with all its stores still operating.

Joann’s Industry and Financial Issues

According to Joann, due to “ongoing industry, economic, and financial challenges,” the best course of action was to find a buyer for the company. Closing stores seems to be part of that strategy as “underperforming stores” aren’t likely to be part of any reasonable bids.

Joann is part of a growing list of major retailers shutting store doors. With high prices eroding the spending power of cash-strapped consumers, retailers are struggling to stay financially afloat.

Since its beginning in 1943, Joann has weathered a pandemic, inflation, supply issues, and changes to consumer habits, most of which happened just in the past few years. Just the same as many other brick-and-mortar stores, like Macy’s and Big Lots, the fabrics and crafts retailer cannot seem to adjust.

According to Newsweek, roughly a quarter of malls across America will likely be closed by 2027, which is where many Joann stores are found. Now, however, it may not matter as many of the company’s locations will already be closed unless a last-minute buyer steps up and commits to keeping them open.

Joann’s going-out-of-business sales could start as soon as this weekend and will likely continue for several months. At the moment, gift cards are still being accepted in-store but not online.