Joann closes 500 stores nationwide after bankruptcy

In the United States, Joann, a prominent fabric and crafts retailer, recently revealed plans to shut down about 500 stores across the country. This announcement comes nearly a year after the company filed for bankruptcy in March 2024 while being burdened with debts ranging between $1 billion and $10 billion. The company, headquartered in Hudson, Ohio, cited multiple reasons for its financial struggles, including increasing costs associated with overseas product shipping and a noticeable decline in consumer demand. In an attempt to address these significant challenges, Joann began Chapter 11 bankruptcy proceedings in January. This legal step was designed to facilitate the sale of its assets while the retailer explored various strategic options to stabilize its financial situation. According to a statement from Joann, the decision to initiate a court-supervised sale process was derived from a careful review of their available paths aimed at maximizing the business's value amid ongoing economic difficulties. Joann operates over 800 stores nationwide, and the planned closures will impact locations in numerous states, with California experiencing the highest number, at nearly 60 closures. Other states facing significant reductions include Florida, Illinois, Massachusetts, Maryland, Michigan, Minnesota, New York, Pennsylvania, and Texas. The retailer has indicated that going-out-of-business sales will commence soon, with the process expected to stretch over several months. This series of closures is indicative of a larger trend within the retail sector, where many major retailers have faced declining sales and are forced to take necessary measures to adapt to changing consumer habits and market conditions. Following the Joann announcement, other retailers have also revealed plans for store closures, highlighting a challenging environment for traditional brick-and-mortar stores in a rapidly evolving industry landscape.