Joann on Wednesday announced it will be closing more than half of its stores across the country after the fabrics and craft retailer filed for bankruptcy for the second time in less than a year.
The retailer is closing about 500 of its 800 stores, arguing that “right-sizing our store footprint is a critical part of our efforts to ensure the best path forward,” a company spokesperson said in a statement.
“This was a very difficult decision to make, given the major impact we know it will have on our team members, our customers and all of the communities we serve,” a Joann spokesperson told The Post.
CNN earlier reported the store closures.
Stores are set to close in all 50 states, with California, New York, Florida, Indiana, Michigan and Pennsylvania losing the most locations, according to court filings.
The fabrics store had first filed for bankruptcy in March 2024, but emerged as a private company a few weeks later, keeping all of its stores open.
Last month, Joann’s interim chief executive, Michael Prendergast, blamed the second bankruptcy filing on a challenging retail environment, as shoppers cut back on spending amid sticky inflation and sales fell.
The company also blamed inventory issues that were “acute and unexpected,” according to the filing.
Prendergast last month said the company was looking for a new buyer.
“After carefully reviewing all available strategic paths, we have determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business,” Prendergast said.
“We hope that this process enables us to find a path that would allow Joann to continue operating as a going concern,” he added.
As potential bidders reviewed the company, “the debtors and their advisors were able to identify a subset of underperforming stores that are unlikely to be considered or included in any going concern bid,” court documents said.
Joann is not the only retailer to suffer a sales slump as stubborn inflation weighs heavily on the industry.
Inflation has not shown signs of cooling anytime soon, heating up to 3% last month, according to the Bureau of Labor Statistics’s Consumer Price Index released Wednesday.
Department stores have been hit particularly hard by weary shoppers, with Kohl’s and Macy’s both set to close stores this year.
