Joann Fabrics and Crafts, a prominent fabric and craft retailer since 1943, has announced it is filing for bankruptcy again. As a result, about 500 of its 850 stores across the U.S. will close, with states like California, Florida, Indiana, Michigan, New York, Pennsylvania, and Washington being hit the hardest, according to CBS12.

This decision follows a March 2024 Chapter 11 bankruptcy filing that allowed the company to privatize and secure $132 million in new financing to manage its $1 billion debt, as reported by USA TODAY. However, despite restructuring, the company faced continued financial challenges, leading to another bankruptcy declaration on January 15.

Interim CEO Michael Prendergast told USA TODAY, "Since becoming a private company in April, the Board and management team have continued to execute on top-and bottom-line initiatives to manage costs and drive value. However, the last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step."

The closures are based on a thorough evaluation of store performance and alignment with future strategic goals. Joann stated that adjusting the size of the store network is part of the company’s strategy to navigate the Chapter 11 process and secure a stable future.