Joann to close 500 of its 800 fabric and craft stores
Joann, the fabrics and crafts retailer, is shutting down hundreds of its stores nationwide as part of its bankruptcy proceedings.
The company filed a motion in court on Wednesday seeking approval to begin closing approximately 500 locations.
In a statement to ABC News, the company's spokesperson said the move is "part of the ongoing Chapter 11 process and our efforts to maximize the value of the business."
"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," the spokesperson said. "A careful analysis of store performance and future strategic fit for the Company determined which stores should remain operating as usual at this time."
The spokesperson also emphasized that "right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for JOANN."
The closures follow Joann's announcement last month that it had filed for voluntary Chapter 11 bankruptcy in U.S. Bankruptcy Court for the District of Delaware to begin a sale process and maximize the company's value.
Despite the bankruptcy proceedings, the company said at the time that Joann stores and its website remained open, serving customers as usual, and employees were still receiving their pay and benefits.
Joann is part of a growing trend of retailers closing stores as consumers reduce spending. With other brands like Kohl's and Macy's also scaling back, more than 15,000 store closures across all businesses are expected in 2025, double the number from last year, according to Coresight Research.
Earlier this month, surf and skate brands Quiksilver, Billabong, and Volcom also announced store closures in the U.S. Liberated Brands, the former license operator of these stores, filed for Chapter 11 bankruptcy, which will result in over 100 locations shutting down, according to a filing.
