Joann to Close 500 Stores Nationwide Amid Bankruptcy Challenges

News Summary

Joann, the well-known arts and crafts retailer, has announced plans to close 500 stores across the U.S. due to financial struggles related to Chapter 11 bankruptcy. This closure strategy aims to consolidate operations, with significant sales commencing on February 15, 2025. The decision affects various states, including California and Florida, impacting both employees and local communities. Founded in 1943, Joann has been a staple in the crafting community, but like many retailers, it faces challenges in adapting to changing market conditions.

Joann to Close 500 Stores Nationwide Amid Bankruptcy Challenges

In a bittersweet announcement for arts and crafts enthusiasts, Joann, the popular crafting retailer, revealed plans to close 500 stores across the United States as part of its ongoing Chapter 11 bankruptcy proceedings. This news, shared on February 12, 2025, comes as the company grapples with significant financial challenges.

A Difficult Decision

Joann’s closure strategy marks a critical step in its efforts to “right-size our store footprint”, which the company believes is essential for establishing a sustainable future. With approximately 850 locations currently in operation, this means that more than half of the stores will be affected, a move that weighs heavy on the hearts of many employees, customers, and local communities.

When Will the Closures Begin?

Fans of crafting will want to mark the date—February 15, 2025, will kick off going-out-of-business sales at the affected stores, offering shoppers an opportunity to grab their favorite supplies before the doors close for good. The closures are poised to impact numerous locations across all 50 states, marking a substantial shift in the company’s presence in local markets, with the only exception being Hawaii.

The Impact on Communities

This decision is not just about stores but is also intertwined with the lives of those who work there and those who rely on Joann for their crafting needs. Specific states that will see the largest reductions in store numbers include California with a jaw-dropping 61 stores closing, Florida with 36, and a slew of others including Michigan and Ohio, each with 33 closures.

Background on Joann’s Financial Struggles

For those who might not know, Joann initially filed for Chapter 11 bankruptcy back in March 2024 but briefly transitioned to a private company after a restructuring process. Unfortunately, it found itself in the same boat again with a second bankruptcy filing on January 15, 2025. The company has cited “acute and unexpected” inventory issues as key contributors to its current plight. Following an extensive analysis of store performance and future strategies, Joann concluded that these closures were necessary to remain viable.

Joann’s Rich History

Founded way back in 1943, Joann started as a small storefront in Cleveland, Ohio, originally branded as Jo-Ann Fabric and Craft Stores. The company marked its 75th anniversary in style with a rebranding to “Joann.” However, as the retail world constantly shifts, even long-standing retailers like Joann are not immune to the economic climate.

The Bigger Picture

The impact of these closures isn’t limited to Joann alone. It’s part of a growing trend in retail, with other giants like Kohl’s and Macy’s also scaling down their operations. Experts predict that over 15,000 retail stores could close across the U.S. in 2025—more than double the closures from the previous year. This trend reflects the ongoing struggles many retailers face in adapting to changing consumer behaviors and economic uncertainties.

A Community Concern

As communities prepare for the changes that these closures will undoubtedly bring, many are left wondering what the future holds for their local crafting outlets. Joann’s widespread presence allowed for the nurturing of creativity and community engagement, and with over 500 stores closing, the crafting landscape may never be quite the same.

For those who love their arts and crafts, it might be time to stock up on supplies while supporting local stores that remain open. As Joann navigates this challenging path ahead, both employees and customers are surely hoping for a brighter future ahead.

Deeper Dive: News & Info About This Topic

• CNN: Joann to Close 500 Stores Nationwide Amid Bankruptcy Challenges
• The Hill: List of the 500 Joann Stores Expected to Close Amid Second Bankruptcy Filing
• KGW: Joann Stores Closing in Oregon and Southwest Washington
• USA Today: Joann Fabric Store Closings
• ABC10: Joann Fabrics Store Closing List 2025
• Wikipedia: Joann Fabrics
• Google Search: Joann Fabrics Bankruptcy
• Google Scholar: Joann Fabrics
• Encyclopedia Britannica: Joann Fabrics
• Google News: Joann Fabrics Closures