In a move signaling further distress in the retail craft market, Joann, a mainstay for fabric and crafts enthusiasts, is set to close roughly 500 of its more than 800 stores nationwide. According to a report by CBS News Boston, the closures come nearly a year after the Hudson, Ohio-based company filed for bankruptcy, citing burdensome debt and diminished consumer demand. The retailer had previously filed for Chapter 11 bankruptcy protection in March 2024, with plans to keep stores operational at the time.
Nevertheless, the challenges proved too substantial to overcome without significant restructuring. Joann began Chapter 11 proceedings anew in January 2025, in part to expedite the sale process. "After carefully reviewing all available strategic paths to address our ongoing industry, economic and financial challenges, JOANN and its financial stakeholders determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business," the company stated, as reported by CBS News Boston. These store closures aim to right-size the company's retail presence as a way to secure a better trajectory moving forward.
Alongside the nationwide closures, 26 stores are being shuttered in Illinois as reported by Chicago Sun-Times. The decision, described by the company as a painful but necessary measure, will affect various communities, customers, and employees whose futures joined to the fates of these stores.
Starting on Saturday, going-out-of-business sales are expected to launch and could persist for several months. Customers should note that while gift cards are still acceptable for in-store usage, they cannot be used for online shopping. Specific details about the timing of the closures and the number of affected employees have not been clarified, but the retailer, as stated by CBS News Boston, remains committed to serving its customers through this transition.
The latest spate of closures from Joann adds to the growing list of retail struggles, following announcements of total shutdowns from other major players like Party City and store closures from Macy's, as detailed by CBS News Boston. The shift touches on the wider narrative of the retail industry grappling with shrinking demand and increased competition, forces that have reshaped the sector's landscape markedly in recent years.
