Joann, the well-known fabric and craft retailer, has announced plans to close approximately 500 of its 800 stores across the United States as part of its ongoing Chapter 11 bankruptcy proceedings. This decision comes after a careful analysis of store performance and strategic alignment, aiming to “right-size” the company’s footprint to ensure its future viability.
The closures will impact stores in nearly every state, with significant reductions in California, Florida, Michigan, Ohio, and Pennsylvania. Included in the closings is the store located at 221 Norman Station Blvd, Suite 2211, Mooresville, NC 28117. Specific details regarding the exact closure dates and the number of employees affected have not been disclosed. However, going-out-of-business sales at the affected locations are expected to begin soon and may continue for several months.
This move follows Joann’s second Chapter 11 bankruptcy filing in less than a year, with the most recent filing in January 2025. The company cited ongoing challenges in the retail environment, financial constraints, and inventory shortages as factors contributing to its financial difficulties. Despite these challenges, Joann intends to maintain operations at its remaining stores and continue serving customers through its online platform.
Interim CEO Michael Prendergast emphasized the difficulty of the decision, acknowledging the significant impact on employees, customers, and communities. He stated that “right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann.”
As the company navigates this restructuring process, it aims to maximize the value of the business through a court-supervised sale, with hopes of continuing operations and emerging from bankruptcy in a stronger financial position.
