Joann Closes 500 Stores Amid Bankruptcy

Joann Inc., a fabric and crafts retailer, plans to close approximately 500 of its stores across the United States, representing over half of its current footprint. This decision comes amid a tumultuous period for Joann Inc., which filed for Chapter 11 bankruptcy protection for the second time within a year in January 2025. The company previously sought Chapter 11 in March 2024 and emerged as a private company, but continued operational challenges, including sluggish consumer demand, inventory shortages, and increased competition from rivals like Hobby Lobby and Oracle Corporation, led to its current untenable debt position. Interim CEO Michael Prendergast stated that closing underperforming locations is crucial for the ongoing process of selling the business, for which Joann Inc. has a proposed 'stalking horse' bid agreement with Gordon Brothers Retail Partners. The closures will impact numerous communities and employees across 49 states.