Joann Fabrics announces closure of 500 stores nationwide

Joann Fabrics is closing over 500 of its 800 store locations nationwide as part of its second Chapter 11 bankruptcy filing, aimed at addressing financial struggles including declining sales and increased competition. The closures will particularly affect states like California and Florida, which are among those hardest hit. Joann, founded in 1943, has faced challenges with inventory issues and customer defection, leading to a strategic decision to cut loss-making stores in hopes of attracting potential buyers. A spokesperson expressed the difficulty of this decision, highlighting the impact on employees and communities. The company previously filed for bankruptcy in March 2024 but failed to sufficiently reorganize, leading to this latest round of closures. Customers are encouraged to check the status of their local stores and take advantage of clearance sales before the closures take effect.