Joann, a well-known fabrics and crafts retailer, has announced plans to close approximately 500 of its stores nationwide as part of its bankruptcy proceedings. The company filed for voluntary Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. Despite the impending closures, Joann's remaining stores and website continue to serve customers, and employees are still receiving their pay and benefits.
The decision to shutter hundreds of locations comes amid a broader trend of retailers scaling back operations due to reduced consumer spending. In 2025, over 15,000 store closures across various businesses are expected, a significant increase from the previous year. Major retailers such as Kohl's and Macy's have also been reducing their physical presence as part of this trend.
Joann's spokesperson explained that the closures are "part of the ongoing Chapter 11 process and our efforts to maximize the value of the business." The move aims to streamline operations and stabilize the company's financial standing. The spokesperson further stated, "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." By right-sizing its store footprint, Joann hopes to secure a stable future for the brand.
Joann is not alone in facing financial challenges. Liberated Brands, the former license operator for surf and skate brands Quiksilver, Billabong, and Volcom, has also filed for Chapter 11 bankruptcy. As a result, over 100 locations of these brands will be closing. This reflects an ongoing wave of store closures expected to continue into the coming year as more retailers confront financial difficulties.
