Joann Fabric and Crafts to Close 500 Stores

Joann Fabric and Crafts is closing over 500 out of its 850 stores across the U.S. as the company files for Chapter 11 bankruptcy for the second time in under a year. This decision to 'right-size' its store footprint comes amid slumping sales, high debt, and increased competition from online and other brick-and-mortar retailers. The closures will affect stores in nearly all states, with California, Florida, and Ohio seeing significant impacts. Joann plans to continue operating remaining stores and its online platform while restructuring its business for a potential sale. Analysts suggest that Joann's failure to maintain inventory and store conditions contributed to its loss of market share. The company faces challenges from competitors like Hobby Lobby and Michaels, which have maintained more stable operations.