Beloved 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.
Beloved fabric and crafting retailer Joann is facing a significant transformation as it prepares to close more than half of its locations due to a recent bankruptcy filing. This news, reported by USA Today and RetailDive, marks a turning point for the struggling retailer, which has been grappling with financial challenges for several years.
After filing for Chapter 11 bankruptcy in March 2024 and subsequently going private, Joann filed for bankruptcy again in January 2025 to facilitate a sale of the business. Michael Prendergast, Interim Chief Executive Officer of JOANN, stated that the company's current financial position and limited inventory, coupled with persistent challenges in the retail environment, forced this difficult decision. Joann emphasized that right-sizing its store footprint is crucial for its long-term survival.Joann's financial troubles have been ongoing for years. The initial bankruptcy filing in March 2024 saw the company secure $132 million in new financing but still carry a substantial $1 billion debt. Despite efforts to regain stability as a private company, Joann continued to face difficulties, leading to the second bankruptcy filing in January 2025. Court documents reveal that the latest restructuring aims to maximize the company's value through a sale process while simultaneously reducing costs by closing stores. Prendergast acknowledged the 'significant and lasting challenges' in the retail landscape that contributed to the company's financial struggles. While Joann has not yet released a complete list of store closures, filings indicate that closures will affect all 50 states. States expected to see the most closures include [insert states here based on court documents]. Joann has filed a motion in court to secure approval for the store closures as part of its restructuring process, but the exact timeline for these closures remains undisclosed. Joann has not yet responded to FOX TV Stations for comment. Despite the company's downsizing, the impact on jobs and its future outlook after the restructuring remain unclear
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