Joann closes 500 stores

New York
Cnn
–

Joann, Fabrics and Crafts dealer, will close more than half of his 800 stores in the coming months as it continues to navigate the bankruptcy process.

About 500 stores across the United States are closing, the retailer said in a statement to CNN, saying that “the right size of our store footprint is a critical part of our efforts to ensure the best way forward.”

“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,” said a Joann spokesman.

Although the company’s statement did not provide a specific list of locations, judicial archives reveal that stores are closing in all 50 states – with California, Florida, Indiana, Michigan, New York, Pennsylvania and Washington among the most influenced by the closures.

The biggest reduction in his footprint comes after Joann filed for bankruptcy last month for the second time in less than a year. The dealer first filed chapter 11 in March 2024, but it appeared a few weeks later as a private company and kept all its stores open.

In his second bankruptcy archiving last month, Joann accused inventory problems that were “emergency and unexpected.” The company had previously revealed in court documents that it was facing an “unexpected ramp-down, and in some cases the whole production of some critical products.

The company also said it at the time it was looking for a buyer. Recently filed court documents reveal that as “the sales process progressed, and potential bidders continued to implement diligence and refine their potential bids, the debtors and their advisers were able to identify a subgroup of under -priesting stores that will be unlikely to be considered or included In any yarded concern offer. ”

Joann joins a growing list of struggling bricks and mortar stores that are unable to remain financially viable in a changing consumer environment. Many Americans have called back to discretionary purchases in response to inflation.

Meanwhile, overall in retail, enjoyed some brands that were on a downward course before 2020, a pandemic and post-pandemic shopping boom. But when normal shopping patterns return, some of these brands are now on their way down that path to bankruptcy.

In addition to Joann, other retailers that close locations this year include Kohl’s and Macy’s. In total, more than 15,000 stores are expected to close by 2025 – more than twice the amount last year, according to Coresight Research.