Joann, a well-known retailer in the fabrics and crafts industry, has announced the closure of 500 out of its 800 stores across the United States. This decision comes as a crucial part of the company’s efforts to restructure under Chapter 11 bankruptcy protection.
The company’s spokesperson emphasized the difficulty of this decision, acknowledging its significant impact on employees, customers, and communities. Despite the absence of detailed information on specific store closures, court filings indicate that the shutdowns will affect all 50 states. Key states impacted include California, Florida, Indiana, Michigan, New York, Pennsylvania, and Washington.
Joann’s financial struggles have been mounting, having previously filed for bankruptcy in March 2024. At that time, the company emerged from the proceedings as a private entity without closing any stores. However, persistent inventory challenges have exacerbated the company’s situation, leading to this more drastic measure.
In recent court documents, the retailer describes an ‘unexpected ramp-down’ and, in some cases, a complete halt in production for several products. This predicament arose alongside the search for potential buyers, with further analysis identifying underperforming stores unlikely to attract acquisition interest.
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Joann’s decision mirrors a broader trend in the retail sector, as inflationary pressures and changing consumer behaviors challenge brick-and-mortar viability. While some retailers thrived during post-pandemic shopping spurts, others like Joann, Kohl’s, and Macy’s are now scaling back. According to Coresight Research, over 15,000 retail locations are expected to shutter in 2025, a substantial increase from the previous year.
The closure of 500 Joann stores highlights the broader challenges facing brick-and-mortar retail in a rapidly evolving market landscape. As the company navigates its second bankruptcy in as many years, its efforts to maintain financial stability will be closely watched by industry observers.
