WASHINGTON (dpa-AFX) - Joann, the fabrics and crafts retailer, is set to shutter more than half of its locations as it navigates its latest bankruptcy proceedings.
Approximately 500 of its nearly 850 U.S. stores will close in the coming months, as the company seeks to 'right-size' its footprint and secure a sustainable path forward.
In an official statement, Joann acknowledged the gravity of the decision, emphasizing its profound impact on employees, loyal customers, and the communities served by the retailer. While the precise list of closures remains undisclosed, court documents indicate that outlets across all 50 states will be affected, with particularly significant reductions expected in California, Florida, Indiana, Michigan, New York, Pennsylvania, and Washington.
This drastic contraction follows Joann's second bankruptcy filing in less than a year. Initially, the company sought protection in March 2024 and emerged as a private enterprise, retaining all of its stores temporarily. However, acute inventory challenges and unexpected production disruptions forced a reevaluation of its operational strategy. Company leadership asserts that focusing on underperforming locations is vital to maximizing value and positioning the business to thrive amid a rapidly evolving retail environment.
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