News Summary
Craft lovers are facing uncertainty as Joann, the renowned fabric and craft store chain, has announced plans to close 500 of its locations across the U.S. This decision follows a second Chapter 11 bankruptcy filing amid challenges like sluggish consumer demand and inventory shortages. Joann, which operates around 800 stores, aims to right-size its footprint, affecting states such as Texas, California, and Florida. The crafting world is shaken, and the company is in talks for a potential sale, raising concerns about its future in the retail landscape.
Sad News for Craft Lovers: Joann Plans to Close 500 Stores
The crafting community is buzzing with feelings of uncertainty as Joann, the popular fabric and craft store chain, announced significant changes that will impact its future. Based in Hudson, Ohio, Joann revealed on February 12, 2025, that it will shut down about 500 stores across the United States, which is over half of its current locations. This news comes on the heels of the company filing for Chapter 11 bankruptcy protection for the second time in under a year.
What’s Going on?
Since its original bankruptcy filing in March 2024, where it emerged as a private company, Joann has been navigating some tricky waters. This time around, various factors, such as sluggish consumer demand and inventory shortages, have put the company in a tight spot. The interim CEO Michael Prendergast has pointed to unanticipated inventory challenges and a challenging retail economy as critical issues plaguing Joann’s operations.
Where Will the Closures Happen?
Joann is not alone in facing the challenges of a competitive retail environment, with heavyweights like Hobby Lobby and larger chains such as Target expanding their craft supply offerings. This increased competition is another hurdle the company has to overcome. The closures will affect a range of states including Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, New York, Pennsylvania, and Texas. In Texas alone, locations set to close include stores in Austin, Dallas, Houston, and Pharr, along with the San Antonio store located at 3142 SE Military Drive.
What’s Next for Joann?
Currently, Joann operates around 800 stores throughout 49 states, and there’s a lot at stake with this announcement. The timeline for the closures has not yet been determined, leaving countless employees in limbo regarding their future. Joann has indicated that right-sizing its store footprint is essential for the company’s future. In response to these changes, Joann is engaging in discussions with Gordon Brothers Retail Partners regarding a potential sale of the business.
A Glimpse into Joann’s History
This isn’t just any old store; Joann has a rich history that goes back to 1943 with its very first store in Cleveland, Ohio. Over the years, the brand transformed and recently celebrated its 75th anniversary by rebranding from Jo-Ann Fabric and Craft Stores to just Joann. That was quite a leap in paving the way for what the future might hold!
The Bigger Picture
While it’s clear that Joann is facing tough times, this is a reality many retailers have experienced as they grapple with the shifting retail landscape. Those who love crafting might find this news heartbreaking, but Joann is committed to working through these obstacles in hopes of emerging stronger. The company has promised a complete list of the stores set for closure on their restructuring website, ensuring transparency during this challenging time.
As we wait for more updates from the crafting giant, it’s important for local communities to keep supporting their businesses, especially small and local stores that rely heavily on loyal customers. The crafting world is undeniably rich and vibrant, and it’s a shame to see such a beloved store in a challenging position.
Let’s keep our fingers crossed for Joann as they navigate this turbulent chapter!
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Additional Resources
- CNN Business
- Wikipedia: Jo-Ann Stores
- USA Today
- Google Search: Joann store closures 2025
- Desert Sun
- Google Scholar: Jo-Ann Stores bankruptcy
- Detroit Free Press
- Encyclopedia Britannica: Retail bankruptcy
- KGW
- Google News: Joann stores closures
