Joann is significantly reducing its store footprint, closing around 500 of its 800 locations across the US.
The announcement was made in a court motion filed by the 82-year-old fabrics and crafts retailer, which is navigating its second bankruptcy within a year.
“As part of the ongoing Chapter 11 process and our efforts to maximize the value of the business, Joann has filed a motion seeking court authority to begin closing approximately 500 stores across the nation,” the company said in a statement.
“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 decision to shut down stores was based on a careful review of their performance and alignment with Joann’s long-term strategy. The company said that some stores will remain open, with ongoing operations ‘as usual’ for now.
“Right sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann,” the company added.
The closures will primarily affect California, where 61 stores are set to close, followed by Florida with 36, and Michigan, Ohio, and Pennsylvania with 33. Illinois will lose 26 stores, while New York is set to close 24.
Joann filed for bankruptcy in January, citing supply chain issues and inventory shortages that significantly impacted sales and left the company with $615 million in debt.
The company is now seeking to sell most of its assets, with Gordon Brothers Retail Partners serving as the initial bidder in the process.
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