Joann's Bankruptcy: 500 Stores Approved for Closure, Sales Begin

Joann, the struggling fabric and craft retailer, has received court approval to close approximately 500 stores across the United States. The move comes as part of the company's ongoing Chapter 11 bankruptcy process, which it entered in January 2025. This significant reduction in its store footprint is a critical step in Joann's efforts to ensure a sustainable future for the business.

The company announced that it will begin going-out-of-business sales at the affected locations starting this weekend, aiming to maximize revenue from the liquidation process. Joann's interim CEO, Michael Prendergast, acknowledged the significant impact the closures will have on team members, customers, and communities, stating, "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."

The list of stores slated for closure spans nearly every state, with California, Florida, Indiana, Michigan, New York, Pennsylvania, and Washington among those most heavily affected. The company selected these locations for closure after an analysis of store performance and strategic fit, aiming to right-size its store footprint and improve its financial position.

Joann's bankruptcy filings have cited inventory challenges and a sluggish retail economy as the primary factors contributing to its financial struggles. The company has faced inventory shortages and inconsistent deliveries of yarn and sewing supplies, leading to understocked shelves and dissatisfied customers. Additionally, suppliers have discontinued some popular items, further exacerbating the issue.



To improve its inventory management and supplier relationships moving forward, Joann can take several steps, such as strengthening supplier relationships, improving demand forecasting, optimizing inventory allocation, reducing lead times, and monitoring and analyzing inventory turnover. By implementing these strategies, Joann can enhance its inventory management and supplier relationships, ultimately leading to better financial performance and customer satisfaction.

As Joann navigates its bankruptcy process and works to close the approved stores, it is essential for the company to focus on its core strengths and adapt to changing consumer behavior and increased competition. By offering unique, high-quality products, investing in its online presence, and exploring strategic partnerships, Joann can differentiate itself from competitors and attract customers seeking specialized or hard-to-find items.

In conclusion, Joann's bankruptcy and the subsequent approval to close 500 stores mark a significant turning point for the company. As it works to right-size its store footprint and improve its financial position, Joann must also focus on enhancing its inventory management, supplier relationships, and adapting to the evolving retail landscape. By doing so, the company can position itself for a more sustainable future and better serve its customers and communities.