Thousands of crafters will soon have to find an alternate way to get their fabrics, beads, and scrapbooking paper. JOANN (formerly Jo-Ann Fabrics) just announced that it's closing 533 of its remaining 800 stores across 49 states. "Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for JOANN," says the company on its restructuring website.
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JOANN's troubles started last year.
In March 2024, JOANN filed for Chapter 11 bankruptcy but said the move was to protect its retail footprint, with no plans to close any stores. However, just last month, the company once again filed for bankruptcy, sharing that it was $615 million in debt with just $8 million in cash, according to The Washington Post. At that time, JOANN confirmed that it planned to close at least six stores but remained tight-lipped on future plans. Now, the larger picture has come into focus.
JOANN will close 533 stores this year.
Now that JOANN has made public its plans to close 533 stores this year, a spokesperson for the company released the following statement:
"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."
JOANN also released a full list of the stores on the chopping block. As shared by The Washington Post, California, Florida, Illinois, Michigan and Pennsylvania are the most heavily impacted.
The hearing to approve this plan is scheduled for Friday, Feb. 14.
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Here's what shoppers can expect in the coming weeks.
JOANN notes on its restructuring website that it has already stopped accepting gift cards for online purchases. Though they can be used in-store, this may change after the court hearing. Additionally, they plan to stop accepting returns 14 days after the court approval.
But shoppers might be happy to know that major sales are on the horizon. On the restructuring website, JOANN says that pending court approval, they expect going-out-of-business sales to commence at impacted stores on Saturday, Feb. 15, continuing for several months after. However, these sales will not extend to the JOANN website.
