JOANN, the crafts and fabrics retailer, has announced plans to close approximately 500 stores across the country as part of its second bankruptcy filing. The company cited ongoing industry, economic, and financial challenges as the driving force behind this decision.
JOANN , the crafts and fabrics retailer, is set to close approximately 500 of its roughly 850 stores nationwide due to its second bankruptcy filing. The company cited ongoing industry, economic, and financial challenges as reasons for the decision, stating that a court-supervised sale process is the best way to maximize the value of the business. As part of its Chapter 11 proceedings, JOANN filed a motion on February 12, 2025, seeking court approval to begin closing the stores.
A hearing to approve this motion is scheduled for Friday, February 14. Texas is home to 43 JOANN stores across 35 cities, with Houston boasting the most locations at four. The company anticipates that going-out-of-business sales will commence at the slated closure stores on Saturday, February 15, and could persist for several months. In a statement, JOANN officials acknowledged the difficult nature of this decision, recognizing its impact on employees, customers, and communities. They explained that a thorough analysis of store performance and future strategic alignment determined which stores would remain operational. Right-sizing the store footprint is crucial to ensuring JOANN's long-term viability. The company was founded in 1943 and filed for Chapter 11 bankruptcy in March 2024, listing over $2.44 billion in total debts against approximately $2.26 billion in total assets. In its initial filing, JOANN reported securing commitments for around $132 million in new financing and anticipated reducing its debt by approximately $505 million. While the organization hasn't explicitly addressed the reasons behind its increased debt, the Associated Press reported last year that consumers have been cutting back on non-essential spending amidst inflationary pressures
Bankruptcy Retail Closures JOANN Chapter 11
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
JOANN to Close 500 Stores Nationwide, Including 18 in TexasJOANN, the crafts and fabrics chain, is facing its second bankruptcy filing and will be closing approximately 500 of its stores across the United States. This includes 18 locations in Texas. The company cites ongoing economic and financial challenges as the reason for the closures.
Read more »
Joann Fabrics to Close Nearly 500 Stores NationwideFabric and crafts retailer Joann Fabrics announced the closure of approximately 500 stores across the United States. This decision comes almost a year after the company filed for bankruptcy in March 2024, citing high shipping costs and declining consumer demand. Joann initiated a court-supervised sale process in January and will begin going-out-of-business sales this Saturday.
Read more »
Joann to Close About 500 Stores Amid BankruptcyJoann Fabrics, the craft retailer, is planning to close approximately 500 stores across the United States, more than half its current footprint, due to ongoing challenges like weak consumer demand and inventory issues. This is the second time Joann has filed for bankruptcy in less than a year. The company aims to sell its business and believes closing underperforming locations is necessary for this process.
Read more »
Joann to Close Nearly 500 Stores Amid BankruptcyJoann Fabrics, facing challenges like sluggish consumer demand and inventory shortages, plans to close about 500 stores across the U.S., representing more than half of its current footprint. This move is part of the company's efforts to sell the business after filing for bankruptcy for the second time in a year.
Read more »
Joann to Close Over 500 Stores in Bankruptcy RestructuringBeloved fabric and crafting retailer Joann is closing more than half of its stores as part of a bankruptcy restructuring. The move marks a significant shift for the struggling retailer, which has been battling financial challenges for years.
Read more »
Joann Fabrics to close 500 stores after bankruptcyJoann Fabrics is closing 500 stores leaving just 300 remaining open nationwide.
Read more »