Joann’s Shocking Closure: 500 Stores to Shut Down Nationwide!

In a stunning announcement that has sent shockwaves through the crafting community, Joann, the well-known fabric and craft retailer, revealed plans to close approximately 500 of its 800 stores across the United States. This drastic move represents about 60% of its locations, and it comes as part of the company’s ongoing Chapter 11 bankruptcy proceedings. This marks Joann’s second bankruptcy filing in less than a year, raising numerous questions about the future of the brand and its impact on local economies.

Joann, headquartered in Hudson, Ohio, filed for bankruptcy in March 2024, citing debts ranging from $1 billion to $10 billion. The company attributed its financial woes to increased shipping costs and a decline in consumer demand. Initially, Joann had planned to keep all its stores operational following the first bankruptcy filing, but as financial pressures mounted, the company shifted to a court-supervised sale process in January 2025.

The decision to close stores affects locations in 49 states, with Hawaii being the only state without a closing store. The closures are expected to impact major markets such as California, Florida, New York, and Texas, where Joann has a significant presence. Local news outlets have already reported that 17 stores in Texas will be among those shutting down.

Joann’s announcement has raised concerns among employees and customers alike. Many are worried about job losses, as the closures will significantly impact the company’s workforce, potentially affecting thousands of employees nationwide. In a statement, Joann expressed its commitment to supporting affected team members and customers throughout this transition.

The closures are part of a broader trend in the retail sector, particularly in the fabric and craft industry, where many retailers are struggling to adapt to changing consumer preferences. As shopping habits evolve, the demand for brick-and-mortar stores has decreased, leading to a wave of retail bankruptcies. In fact, it is projected that over 15,000 stores across various brands are expected to shut down in 2025.

Joann has not disclosed specific reasons for the closures beyond financial difficulties, but industry analysts suggest that the shift in consumer behavior, alongside economic pressures, plays a significant role. As part of its restructuring efforts, Joann plans to focus on strengthening its remaining stores and improving its online presence.

Going-out-of-business sales are anticipated to start soon, providing customers with an opportunity to purchase remaining inventory at discounted prices. However, it is important to note that while gift cards will still be accepted for in-store purchases, they will not be valid for online shopping during the closure process.

The company’s management has indicated that right-sizing the store footprint is essential for Joann’s long-term viability and future growth. As the retail landscape continues to evolve, Joann’s situation reflects the broader challenges faced by many traditional retailers.

In conclusion, the impending closure of Joann’s stores marks a significant moment in the retail world, particularly for the crafting community that has relied on the brand for decades. The impact of these closures will be felt not only by employees but also by customers and local economies across the nation. As the company navigates these turbulent waters, its commitment to supporting its team members and enhancing its online presence will be crucial in determining its future success.

Joann’s journey serves as a reminder of the ever-changing dynamics within the retail sector and the importance of adaptability in the face of economic challenges.