US fabric and crafts retailer Joann, which operates 800 stores in 49 states, has filed a motion seeking court authority to shut 500 locations across the country. 

The closures will span almost every state, with California facing the brunt as almost 60 locations cease operations.  

Other states significantly impacted by the decision are Florida, Illinois, Massachusetts, Maryland, Michigan, Minnesota, New York, Pennsylvania and Texas. 

The company has scheduled going-out-of-business sales to commence on Saturday 15 February 2025 in a process set to take several months.

Gift cards will continue to be honoured for purchases made in-store but will no longer be valid for online transactions. 

A spokesperson for Joann stated: “As part of the ongoing Chapter 11 process and our efforts to maximise the value of the business, Joann has filed a motion seeking court authority to begin closing approximately 500 stores across the nation.  

“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 careful analysis of store performance and future strategic fit for the company determined which stores should remain operating as usual at this time. Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann.” 

Joann filed for Chapter 11 proceedings in the United States Bankruptcy Court for the District of Delaware in January 2025.  

The company aims to facilitate a sale process that optimises the value of its business. 

It has given assurances that its remaining stores and its website are conducting business as usual and are dedicated to serving customers.  

It also confirmed that team members will continue receiving their wages and benefits during this period. 

When filing for Chapter 11 proceedings, Joann interim chief executive officer Michael Prendergast said: “Since becoming a private company [...], the board and management team have continued to execute on top and bottom line initiatives to manage costs and drive value. However, the last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step. After carefully reviewing all available strategic paths, we have determined that initiating a court-supervised sale process is the best course of action to maximise the value of the business. We hope that this process enables us to find a path that would allow Joann to continue operating as a going concern.” 

In March 2024, Joann had initiated voluntary prepackaged Chapter 11 bankruptcy proceedings aimed at restructuring its finances.