Fabric and crafts retailer Joann plans to close approximately 500 stores across the US, about half of its nationwide footprint, amid struggling sales and inventory shortages. The company announced the move on Wednesday, following a tumultuous year marked by two bankruptcy filings.
Joann filed for Chapter 11 bankruptcy protection in March 2024 and later emerged as a private company before returning to bankruptcy in January due to operational challenges. The company cited sluggish consumer demand and inventory shortages as key reasons for its financial struggles.
The move is part of a larger restructuring effort, with Joann seeking court permission to begin the process of closing underperforming locations. The initial list of stores set for closure includes sites in Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, New York, Pennsylvania, and Texas.
Joann’s bankruptcy filings have been linked to slowdowns in discretionary spending, particularly among consumers who have taken a step back from at-home crafts since the early COVID-19 pandemic. The company has also faced increased competition from rivals like Hobby Lobby and larger retailers such as Target, which now offer art supplies and kits.
Interim CEO Michael Prendergast cited “unanticipated inventory challenges” and a “sluggish retail economy” as key factors contributing to Joann’s financial struggles. The company maintains that selling the business is the best path forward, with a proposed “stalking horse” bid agreement with Gordon Brothers Retail Partners.
Source: https://local12.com/news/local/here-5-cincinnati-joann-stores-fabric-crafts-closing-close-retailer-bankruptcy-protection-inventory-shortage-underperforming