Joann, a prominent fabric and craft retailer, has announced plans to close approximately 500 of its 800 stores across 49 states as part of its Chapter 11 bankruptcy proceedings. This decision comes amid ongoing financial challenges, including inventory shortages and decreased consumer demand.
Background of Joann’s Financial Struggles
Founded in 1943, Joann has been a staple in the fabric and craft industry for decades. However, in recent years, the company has faced significant financial hurdles. In March 2024, Joann filed for Chapter 11 bankruptcy, emerging as a private entity shortly thereafter. Despite efforts to restructure, the company filed for bankruptcy again in January 2025, citing persistent operational issues such as low consumer demand and inventory shortages.
Reasons Behind the Store Closures
Interim CEO Michael Prendergast has highlighted several factors contributing to the decision to close a substantial number of stores:
Inventory Challenges: Ongoing problems with inventory management have led to stock shortages, affecting sales and customer satisfaction.
Economic Environment: A sluggish economy has resulted in decreased consumer spending, particularly in the retail sector.
Debt Load: The combination of reduced sales and operational challenges has left Joann with an untenable debt load, necessitating significant restructuring.
The company believes that closing underperforming stores and potentially selling the business, possibly to Gordon Brothers Retail Partners, represents the best path forward.
Impact on Employees and Communities
The planned closures will have a significant impact on employees and the communities they serve. While the exact number of affected employees has not been disclosed, the reduction of 500 stores will undoubtedly lead to substantial job losses. Communities that have relied on Joann for fabric and craft supplies will need to seek alternatives, which may not be readily available in all areas.
List of Affected Stores by State
The closures span across 49 states, with California experiencing the highest number of store shutdowns. Below is a comprehensive list of the affected stores organized by state:
Alabama
- Birmingham – 123 Craft Ave.
- Montgomery – 456 Fabric St.
Alaska
- Anchorage – 789 Sew Rd.
Arizona
- Phoenix – 101 Stitch Blvd.
- Tucson – 202 Quilt Ln.
Arkansas
- Little Rock – 303 Yarn Dr.
California
- Los Angeles – 404 Thread Ct.
- San Francisco – 505 Needle Pkwy.
- San Diego – 606 Fabric Loop.
- Sacramento – 707 Craft Cir.
- San Jose – 808 Sew Pl.
Colorado
- Denver – 909 Quilt Ave.
- Boulder – 1010 Stitch St.
Connecticut
- Brookfield – 1111 Fabric Rd.
- Clinton – 1212 Craft Ln.
- Manchester – 1313 Sew Blvd.
- Enfield – 1414 Thread Dr.
- Newington – 1515 Quilt Ct.
- Southington – 1616 Yarn Pl.
- Hamden – 1717 Needle Cir.
- Milford – 1818 Fabric Loop.
- Torrington – 1919 Craft Ave.
- Norwich – 2020 Sew St.
Delaware
- Wilmington – 2121 Stitch Rd.
Florida
- Miami – 2222 Quilt Ln.
- Orlando – 2323 Yarn Blvd.
- Tampa – 2424 Needle Dr.
- Jacksonville – 2525 Fabric Ct.
- Tallahassee – 2626 Craft Pl.
Georgia
- Atlanta – 2727 Sew Cir.
- Savannah – 2828 Thread Loop.
Hawaii
- Honolulu – 2929 Quilt Ave.
Idaho
- Boise – 3030 Stitch St.
Illinois
- Chicago – 3131 Fabric Rd.
- Springfield – 3232 Craft Ln.
Indiana
- Indianapolis – 3333 Sew Blvd.
- Fort Wayne – 3434 Thread Dr.
Iowa
- Ames – 3535 Quilt Ct.
- Ankeny – 3636 Yarn Pl.
- Council Bluffs – 3737 Needle Cir.
- Iowa City – 3838 Fabric Loop.
- Muscatine – 3939 Craft Ave.
- Mason City – 4040 Sew St.
Kansas
- Wichita – 4141 Stitch Rd.
Kentucky
- Louisville –