Joann, the well-known fabrics and crafts retailer, has announced plans to close over 500 of its 800 stores as it navigates through the bankruptcy process. This decision is seen as a necessary step for the company, as they aim to “right-size” their store footprint, which is critical for finding the best path forward amid financial difficulties.
In a statement, a spokesperson from Joann expressed the difficulty of the decision, acknowledging the significant impact it will have on employees, customers, and the communities they serve. Although a detailed list of closing locations was not provided, recent court filings indicate that closures will affect stores across all 50 states, with significant numbers in states like California, Florida, Indiana, Michigan, New York, Pennsylvania, and Washington.
This move follows Joann’s second bankruptcy filing in less than a year, with the retailer originally entering Chapter 11 in March 2024. While it briefly emerged as a private company and kept its stores open, recent inventory challenges led to another filing last month. Joann attributed these issues to unexpected production slowdowns and severe inventory shortages.
As the company seeks potential buyers, new court documents reveal that they have identified a number of underperforming stores which will not likely be included in any future bids. This action aligns with a broader trend in the retail sector, where many brick-and-mortar stores are struggling to remain viable as consumer spending shifts due to inflation and changing shopping habits.
Additionally, the retail landscape has seen a mix of successes and failures; while some brands experienced a resurgence during the pandemic, many are now faced with the realities of declining sales as normal shopping patterns resume. In light of these challenges, Joann is not alone, with other retailers like Kohl’s and Macy’s also announcing store closures this year. According to Coresight Research, more than 15,000 stores across various brands are expected to close in 2025, indicating a turbulent time for the retail industry.
This situation underscores the evolving nature of retail and consumer behavior, as companies attempt to adapt and survive in a competitive marketplace. However, there is hope for reinvention and recovery, as businesses leverage their unique offerings and find innovative ways to engage with customers in this changing environment.