Hudson, OH – Joann Fabrics, one of the largest fabric and craft retailers in the United States, has announced plans to close approximately 500 of its 800 stores, following its second Chapter 11 bankruptcy filing in less than a year. The company cited financial struggles, declining sales, and inventory challenges as key reasons for the closures.
Why Is Joann Fabrics Closing Stores?
✔ Bankruptcy Filing: Joann Fabrics previously filed for Chapter 11 bankruptcy in March 2024, reducing its $1 billion debt by $500 million after securing $132 million in financing.
✔ Continued Financial Struggles: Despite restructuring efforts, sales did not recover, leading to a second bankruptcy filing in January 2025.
✔ Market Challenges: The company has faced stiff competition from online retailers and big-box stores, impacting its ability to sustain physical locations.
📢 Read More: Why Joann Fabrics Is Closing Hundreds of Stores – Full Report Here
Which Locations Are Closing?
🚨 Major store closures will impact several states, including:
- California: 61 stores
- Florida: 36 stores
- Pennsylvania: 33 stores
- Ohio: 33 stores
- Michigan: 33 stores
📢 Full List of Affected Locations: Check Here
Company Statement on Closures
💬 Interim CEO Michael Prendergast addressed the difficult decision, stating:
“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. Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann.”
📢 Read More: Joann Fabrics CEO’s Full Statement on the Closures – Click Here
What’s Next for Joann Fabrics?
✔ Going-Out-of-Business Sales: Expected to begin on February 15, 2025, pending court approval.
✔ Remaining Stores: Around 300 locations will continue operating, alongside the company’s online store.
✔ Potential Sale: Joann is exploring a sale process to maximize the value of its business, with Gordon Brothers Retail Partners, LLC as the initial bidder.
📢 Read More: What Joann Customers Need to Know About the Closures – Full Story
Customer Reactions
💬 Many longtime Joann Fabrics customers expressed disappointment over the closures, with concerns that alternative retailers may not offer the same quality or variety of fabrics and crafts supplies.
✔ Some customers are now turning to competitors like Michael’s and Hobby Lobby for their craft needs.
✔ Others are worried about higher prices at big-box retailers like Walmart, which do not specialize in fabric and craft supplies.
📢 Read More: How Joann’s Closure Will Impact Crafters Across the U.S. – Latest Report
What Happens Next?
✔ Customers should take advantage of liquidation sales at closing locations before doors shut permanently.
✔ Employees at affected stores will be offered severance packages, though details remain unclear.
✔ Joann Fabrics will continue operating a smaller number of locations and expanding its online presence.
🚨 Stay tuned for updates on Joann Fabrics’ future and retail industry trends.
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