Joann Fabrics to Close 500 Stores Amid Financial Struggles

NEW YORK, Feb. 12, 2025 — Joann, the popular fabrics and crafts retailer, announced plans to close approximately 500 of its 800 stores across the United States within the coming months. This decision comes as the company grapples with significant financial challenges, including a second bankruptcy filing in less than a year.

In a statement to CNN, a Joann spokesperson emphasized that “right-sizing our store footprint is a critical part of our efforts to ensure the best path forward.” The closures will affect locations nationwide, with California, Florida, Indiana, Michigan, New York, Pennsylvania, and Washington being the most impacted.

Joann’s announcement follows its recent bankruptcy filing in January 2025, marking the company’s second Chapter 11 filing since March 2024. The first filing allowed Joann to emerge briefly as a private company while keeping all stores operational. However, recent court documents reveal ongoing challenges, primarily due to “acute and unexpected” inventory issues.

As Joann reevaluated its business strategy and store performance, they noted in court filings that “as the sale process progressed, prospective bidders continued to conduct diligence and refine their potential bids.” The company identified a subset of underperforming stores unlikely to be included in any future business arrangement.

Joann’s difficulties reflect a broader trend among brick-and-mortar retailers struggling to adapt to changing consumer habits, particularly in the wake of inflation. Many customers have reduced discretionary spending, leading to significant challenges for stores heavily reliant on crafts and fabric sales.

In 2025, over 15,000 retail outlets are projected to close, doubling the number from the previous year, according to Coresight Research. Alongside Joann, other retailers also face the harsh realities of shifting market conditions.

This significant reduction in Joann’s physical presence represents a substantial impact on the communities it serves, as the spokesperson acknowledged: “This was a very difficult decision to make, given the major impact we know it will have on our team members, our customers, and all of the communities we serve.”

The future of Joann remains uncertain as they continue to seek solutions to navigate their financial landscape amid a competitive retail environment.