Joann closes 500 of his 800 fabric stores in the middle of other bankruptcy

On By Littum

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The news is still getting worse for fans of fabric and craft shop Joann, which is now set to close more than half its locations throughout the US

The Embated Dealer first filed for bankruptcy in March 2024 after securing around $ 132 million in new funding to put his debt of $ 1 billion. At that time, the company remained fluid by choosing to go privately. However, a rash of store closures followed before the company again submitted to Chapter 11 -Contest in January to “facilitate a sales process to maximize the value of its business.”

“Since becoming a private company in April, the board of directors and management teams have continued to execute top and bottom line initiatives to manage costs and drive value,” said Michael Prendergast, temporary CEO of Joann, in January. “However, the last several years have presented significant and lasting challenges in the retail environment, which together with our current financial position and limited stock levels forced us to take this step. “

Now Joann has confirmed that it plans to close 500 of his approx. 850 stores nationwide.

“This was a very difficult decision to make, given the greatest influence we know it will have on our team members, our customers and all the communities we serve,” Joann said in a statement to the US Today on Wednesday. “A careful analysis of store performance and future strategic fit for the company determined which stores should remain as usual at this time.”

The spokesman said the closures are part of the ongoing Chapter 11 process and that Joann has already submitted a proposal to the court to get the block to shut down the approx. 500 locations.

“The right size of our store footprint is a critical part of our efforts to secure the best way forward for Joann,” the statement continued.

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Which Joann locations close?

The company has not yet released a complete list of store closures. Earlier, USA Today reported that at least eight stores over Iowa, North Carolina, Maryland, Pennsylvania, New York and Massachusetts closed in early January “as part of evaluation and optimization of routine shop.” However, this was before the second bankruptcy recording.

The court’s documents show that the new tsunami of closures will occur in all 50 states. Some states, including California, New York, Michigan, Florida and Indiana, are intended to be hit hardest.

This story has been updated to add new information.

Contribution: Jonathan Limehouse, USA Today