Joann, the struggling fabric retailer, is shutting down 500 of its 800 locations.

 

A Joann store in El Cerrito, California, scheduled for closure. [David Paul Morris/Bloomberg/Getty Images]

---

Joann to Close 500 Stores Amid Bankruptcy Struggles

Joann, the fabrics and crafts retailer, is shutting down more than half of its 800 stores in the coming months as it continues to navigate bankruptcy.

In a statement to CNN, the company confirmed approximately 500 store closures across the U.S., stating that “right-sizing our store footprint is a critical part of our efforts to ensure the best path forward.”

“This was a very difficult decision to make, given the major impact we know it will have on our team members, our customers, and the communities we serve,” a Joann spokesperson said.

While the company has not released an official list of affected locations, court filings indicate closures in all 50 states, with California, Florida, Indiana, Michigan, New York, Pennsylvania, and Washington among the hardest hit.

The downsizing comes after Joann filed for bankruptcy last month—its second filing in less than a year. The retailer first declared Chapter 11 bankruptcy in March 2024 but quickly re-emerged as a private company, keeping all its stores open.

In its latest filing, Joann cited unexpected inventory disruptions as a major challenge, revealing in court documents that some critical products faced a “ramp-down or complete cessation of production.” The company had also been seeking a buyer, but court records now indicate that a subset of underperforming stores will be excluded from any potential sale.

Joann, which previously rebranded by dropping “Fabrics” from its name, is one of many brick-and-mortar retailers struggling in today’s shifting consumer landscape. Inflation has led many Americans to cut back on discretionary spending, making survival even tougher for traditional retailers.

Other major chains also closing stores this year include Kohl’s and Macy’s. In total, more than 15,000 stores are expected to shut down in 2025—more than double last year’s closures, according to Coresight Research.