Joann, the fabric and craft chain, reportedly closing several locations

The beloved fabric and crafting retailer Joann is closing more than half of its locations as part of its latest bankruptcy restructuring, USA Today and RetailDive recently reported. 

The closures mark a significant shift for the retailer, which has been struggling with financial challenges over the past few years. After first filing for Chapter 11 bankruptcy in March 2024 and later going private, Joann again filed for bankruptcy in January 2025 to facilitate a sale of the business.

"The last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step," said Michael Prendergast, Interim Chief Executive Officer of JOANN, regarding the recent bankruptcy filing. 

The company stated that the decision to close 500 stores was a difficult one but necessary for its long-term survival.

"Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for JOANN," the company said in a statement obtained by USA Today.

Why is Joann closing so many stores? 

The backstory:

Joann has been battling financial difficulties for years. In its first Chapter 11 bankruptcy filing in March 2024, the company secured $132 million in new financing but still carried around $1 billion in debt. Despite moving forward as a private company, Joann struggled to regain stability, leading to its second bankruptcy filing in January 2025.

According to court filings, Joann’s latest restructuring aims to maximize the company’s value through a sale process while reducing costs through store closures.

Joann’s interim CEO Michael Prendergast acknowledged the tough retail environment, stating that "significant and lasting challenges" contributed to the company’s financial strug

Which Joann stores are closing?

By the numbers:

Joann has not yet released a full list of store closures, but filings indicate that closures will occur in all 50 states. Court documents obtained by USA Today show that states expected to see the most closures include:

• California
• New York
• Michigan
• Florida
• Indiana

What's next:

Joann has filed a motion in court to gain approval for the store closures as part of its restructuring process. The company has not specified when the closures will take effect.

In a statement to FOX TV Stations, a spokesperson for Joann said: "As part of the ongoing Chapter 11 process and our efforts to maximize the value of the business, JOANN has filed a motion seeking court authority to begin closing approximately 500 stores across the nation. 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 careful analysis of store performance and future strategic fit for the Company determined which stores should remain operating as usual at this time. Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for JOANN."

While Joann is shrinking its footprint, it remains uncertain how many jobs will be impacted or what the future holds for the company after the restructuring is complete.