Joann Closes Six Stores Amid Bankruptcy Restructuring

Joann, the popular craft and fabric retailer, has confirmed the closure of six stores across the United States as part of its ongoing bankruptcy restructuring. The closures, which include locations in Holyoke, Massachusetts, and Ithaca, New York, are part of a “routine store location evaluation and optimization,” according to Amanda Hayes, Joann’s director of corporate communications, diversity, and inclusion.

The retailer, which filed for Chapter 11 bankruptcy in March 2024, has been working to stabilize its operations after a pandemic-era sales boom faded, leaving the company with significant debt. Joann’s creditors agreed to cancel approximately $505 million in debt and take ownership of the company as part of the restructuring process. The chain has also opened new and remodeled stores in Great Falls, Montana, and Maplewood, Minnesota, signaling a shift in its retail strategy.

Local news outlets have reported additional closures in Hermitage, Pennsylvania, and Cockeysville, Maryland. Shoppers at these locations can expect liquidation sales with discounts of up to 90% off. For example, the Hermitage store will close on January 19, with items marked down by 50% to 70%, according to signs outside the store.

Joann, formerly known as Jo-Ann Fabrics, has been a staple for crafting enthusiasts for over 80 years, operating nearly 800 stores across 49 states. Despite the closures, the company has emphasized its commitment to serving customers and maintaining operations. “We remain committed to our suppliers, partners, Team Members, and other stakeholders,” said Scott Sekella, Joann’s chief financial officer, in a statement.

The retailer’s bankruptcy filing in 2024 followed a challenging period marked by declining sales and mounting debt. Joann reported long-term debt of approximately $1.2 billion in December 2023. The company received $153 million in new financing as part of its restructuring efforts and successfully exited bankruptcy in April 2024.

Joann’s struggles reflect broader challenges in the retail sector, where other chains, such as Bed Bath & Beyond, have also faced financial difficulties. As the company continues to adapt to changing market conditions, it remains focused on optimizing its store footprint and meeting the needs of its loyal customer base.