News Summary
Joann Fabrics has announced plans to close approximately 500 stores as part of its second Chapter 11 bankruptcy filing. This significant decision affects locations across 49 states, with Michigan and Illinois facing the highest impact. The company aims to address its substantial $1 billion debt amid shifting consumer behavior towards e-commerce. While executives express concern for employees and shoppers, some stores will remain open as Joann seeks to navigate its financial challenges and modernize its image as it approaches its 75th anniversary.
Joann Fabrics to Close Nearly 500 Stores Nationwide Amid Bankruptcy Woes
In a significant shake-up for the crafting community, Joann Fabrics has announced plans to close approximately 500 of its 850 locations across the United States. This decision is part of the company’s second Chapter 11 bankruptcy filing, which was submitted earlier this year in January 2025. With the company grappling with inventory challenges and mounting financial issues, it’s a tough time for both the retailer and its loyal customers.
Details on Store Closures
The closures will affect stores in 49 states, hitting Michigan the hardest where 33 out of 41 stores will shut their doors. In Illinois, 26 of the 34 stores are also on the chopping block. Court documents reveal that a total of 533 stores are set for closure, although Joann has yet to provide an official list of which specific locations will be impacted. This lack of clarity is understandably causing concern for shoppers and employees alike.
The Journey Through Bankruptcy
You may recall that Joann first filed for bankruptcy back in March 2024 but emerged as a private entity after successfully securing $132 million in financing. This latest bankruptcy aims to slash the company’s staggering $1 billion debt by around $500 million. The decision to close so many stores is based on a rigorous analysis of store performance and how well they fit into the company’s future strategy.
Bracing for a Retail Trend
These closures aren’t just a sad moment for fans of DIY projects—their timing highlights a troubling trend across the retail industry. Experts forecast that more than 15,000 stores could close nationwide in 2025 alone. Consumer behavior is shifting rapidly towards e-commerce, leaving many traditional brick-and-mortar retailers scrambling to adapt.
Joann’s Impact and Future Plans
In light of the ongoing closures, Joann executives have expressed their heavy hearts over the decision, recognizing the impact it will have on employees, customers, and communities. Employees at remaining locations will continue to receive pay and benefits during this turbulent time, keeping morale up even as the landscape changes.
A Look at Joann’s History
Founded in 1943 as a single store in Cleveland, Ohio, Joann has grown into a nationally recognized chain over the years. As they approach their 75th anniversary, they have recently rebranded to simply “Joann,” aiming to modernize their image and connect more deeply with their customer base. However, the road to recovery seems challenging as they adjust to changing consumer habits.
Hope for the Future
While it seems like a difficult road ahead, some Joann locations will remain open as the company seeks creative solutions to its financial troubles. The goal is not just to cut losses but also to maximize the value of the business, potentially paving the way for future partnerships or sales. So while many fans of fun crafts and textiles may be feeling disillusioned right now, there is still a glimmer of hope for those who cherish the Joann legacy.
As the crafting community says goodbye to many familiar locations, the future of Joann Fabrics remains to be seen. With continued operational challenges and the ever-evolving retail landscape, many are left wondering what’s next for this beloved crafting retailer.
Deeper Dive: News & Info About This Topic
- The Telegraph: Joann Fabrics Store Closures
- Fox 35 Orlando: Joann Fabrics Store Closures
- Fox 5 NY: Joann Stores Closing
- Good Morning America: Joann Store Closures
- Philly Burbs: Joann Fabric Closures
- Wikipedia: Joann Fabrics
