Joann Fabrics Announces Closure of 500 Stores Nationwide

Joann Fabrics has announced a significant restructuring plan that will see approximately 500 of its stores closing across the United States. This decision comes in the wake of the company’s ongoing Chapter 11 bankruptcy proceedings, which began in early 2024. As a well-known retailer in the fabric and craft industry, Joann’s closures will have far-reaching implications for customers, employees, and the broader retail landscape.

Overview of Store Closures

On February 12, 2025, Joann confirmed its plans to close nearly 500 locations, representing a substantial portion of its store footprint. The company operates more than 800 stores nationwide. This decision reflects a strategic move to focus on its more profitable locations while addressing financial challenges. The closures are set to begin with going-out-of-business sales starting on February 15, 2025.

Reasons Behind the Closures

The announcement follows Joann’s filing for Chapter 11 bankruptcy protection in March 2024, during which it reported debts ranging from $1 billion to $10 billion. The company cited rising shipping costs and declining consumer demand as primary factors contributing to its financial struggles. Furthermore, Joann’s management indicated that a careful analysis of store performance informed the decision to close these locations.

Impact on Customers and Employees

Going-Out-of-Business Sales

For customers, the impending closures mean that many will have opportunities to purchase crafting supplies at discounted prices during the going-out-of-business sales. These sales are expected to last for several months as inventory is liquidated. While you can still use gift cards for in-store purchases. However, retailers will not accept them for online transactions during this period.

Community Effects

The closure of Joann stores may have a significant impact on local communities, particularly in smaller towns where these stores often serve as gathering places for crafters and hobbyists. The loss of such a community hub can affect local economies and reduce access to crafting supplies for residents.

Reactions from Stakeholders

Consumer Sentiment

Consumer reactions have been mixed. Many loyal customers express disappointment at losing their local Joann store. At the same time, others understand the need for the company to adapt to changing market conditions. Some consumers are turning to alternative craft retailers such as Michaels or Hobby Lobby for their crafting needs.

Company Statements

In a statement regarding the closures. Joann emphasized its commitment to serving its customers and supporting its employees throughout this transition. The company acknowledged that:

“right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for JOANN.”

Broader Retail Context

Joann’s decision is part of a larger trend affecting many retailers facing similar challenges. With increased competition from online shopping and changing consumer habits, many traditional brick-and-mortar stores are reevaluating their operations. Notably, other major retailers like Walgreens and Macy’s have also announced plans to close underperforming locations.

Conclusion: Navigating Change in Retail

In summary, Joann Fabrics‘ decision to close approximately 500 stores marks a significant shift in its business strategy amid ongoing financial difficulties. While this move aims to stabilize the company and focus on stronger locations, it raises important questions about the future of retail in an increasingly digital marketplace. As Joann navigates these changes, both customers and employees will feel the impact as they adapt to the evolving landscape of crafting supplies and retail services.