Joann, the well-known fabric and crafts retailer, announced on Wednesday that it will be shutting down approximately 500 stores across the United States. This decision comes nearly a year after the company filed for bankruptcy.
Based in Hudson, Ohio, Joann currently operates more than 800 stores nationwide. However, in March 2024, the company declared bankruptcy, revealing financial struggles with reported debt ranging between $1 billion and $10 billion. According to court filings, Joann attributed its financial difficulties to a combination of rising costs associated with importing products from overseas and a decline in consumer demand for its merchandise.
The planned closures mark a significant downsizing for the retailer, which has long been a go-to destination for craft enthusiasts, sewers, and DIY hobbyists. While Joann has yet to release a full list of affected locations, the closures are expected to impact communities across the country as the company restructures its operations.
Initially, Joann had planned to keep its stores open despite its financial struggles. However, in January 2025, the company took a significant step by initiating Chapter 11 bankruptcy proceedings, aiming to facilitate a sale process.
In an official statement, Joann explained that after thoroughly evaluating all possible strategies to address the financial, economic, and industry-wide challenges it faced, the company and its financial partners concluded that a court-supervised sale would be the most effective way to maximize the business’s value. As part of this restructuring, Joann emphasized the necessity of reducing its number of stores, calling it a “critical” measure to ensure the company’s long-term sustainability.
The store closures are widespread, affecting nearly every U.S. state. California is seeing the highest number of shutdowns, with nearly 60 locations closing. Other states experiencing a significant number of closures include Florida, Illinois, Massachusetts, Maryland, Michigan, Minnesota, New York, Pennsylvania, and Texas.
As part of the liquidation process, Joann announced that going-out-of-business sales will begin on Saturday and could continue for several months. Customers can still use Joann gift cards for in-store purchases, but online redemption is no longer an option.
Despite these major changes, the company reassured its loyal customer base—comprised of sewing, quilting, crocheting, and crafting enthusiasts—that it remains committed to providing quality service and products. Additionally, Joann acknowledged the importance of s
upporting its employees throughout the transition, as it navigates the next phase of its business restructuring.
Joann’s decision to close hundreds of stores is part of a growing trend of major retail shutdowns across the country. In recent months, several well-known retailers have announced significant closures as they struggle with financial pressures and shifting consumer habits.
In December, Party City revealed that it would be shutting down all of its stores, a decision that came just one day after the company announced widespread layoffs at its corporate headquarters. The news marked the end of an era for the popular party supply chain, which had faced ongoing financial struggles in recent years.
The retail shake-up continued into the new year. In January, Macy’s, one of the nation’s most iconic department store chains, announced plans to close 66 underperforming stores across the United States. The move was part of the company’s broader strategy to streamline operations and focus on its more profitable locations.
As for Joann, the company has yet to provide a specific timeline for when its store closures will take effect. However, with liquidation sales expected to begin soon, many locations could shut their doors in the coming months as part of the retailer’s restructuring efforts.
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