Map Reveals Where Joann Fabrics is Closing 300 of its 500 Stores Nationwide

Joann Fabrics is closing around 500 of its remaining 800 stores as it faces Chapter 11 bankruptcy, the company announced this week.

The closures will affect shoppers all across the country, but the bulk of the closures are concentrated in California, Florida, Indiana, Michigan, New York, Pennsylvania and Washington.

Why It Matters

The popular fabric and crafts retailer originally declared bankruptcy last year amid a larger retail crisis.

Many chains have faced economic uncertainty since the coronavirus pandemic, which pushed many consumers toward online shopping over brick-and-mortar.

Almost 25 percent of America’s largest shopping malls are anticipated to close by 2027, according to research from real estate services firm Green Street Advisors.

What To Know

Joann Fabrics filed for Chapter 11 protection again last month.

As of this week, the retailer said in a court filing it would be closing roughly 500 underperforming stores in hopes of lowering its costs.

“As the sale process progressed, and prospective bidders continued to conduct diligence and refine their potential bids, the Debtors and their advisors were able to identify a subset of underperforming stores that are unlikely to be considered or included in any going concern bid,” lawyers for Joann Fabrics said in the court filing.

More than 40 states will be impacted by the closures, but California, Florida, Indiana, Michigan, New York, Pennsylvania and Washington are some of the hardest hit.

Closing sales are set to begin now, and there could be more closures down the line, according to the company.

The closing sales are likely to offer major discounts, up to 90 percent off all items.

While Joann initially saw a sales boom during the pandemic as people focused on arts and crafts projects, the store experienced a lower customer demand in the years following the coronavirus.

The chain also had $1.2 billion in long-term debt as of December 2023, according to earnings reports.

What People Are Saying

A spokesperson for Joann Fabrics said in a statement: “As part of the ongoing Chapter 11 process and our efforts to maximize 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.”

R.J. Hottovy, head of analytical research at Placer.ai, previously told Newsweek: “Joann experienced a surge in demand for crafting products during the pandemic, but this has normalized over the past several years, leading to downward pressure on visitation trends. At the same time, rent concessions offered during the pandemic have been lifted, increasing the cost of operating stores. These challenges have impacted many retailers, contributing to store closures for Joann and other chains across the industry.”

Kevin Thompson, finance expert and founder/CEO of 9i Capital Group, previously told Newsweek: “Joann took on significant debt to fund a buyout, leaving it with large liabilities. To cut costs, the company began closing stores to reduce expenses. Joann’s bankruptcy was driven by excessive debt, an oversaturation of stores, and lingering effects from the pandemic. Additionally, rising tariffs and inflation increased the cost of importing fabrics and other goods, further straining the company’s finances.”

Michael Ryan, finance expert and founder of MichaelRyanMoney.com, previously told Newsweek: “The company is caught in what I call the ‘middle-market squeeze’ – too big to operate with the agility of local craft stores, yet too small to match the purchasing power of retail giants like Walmart or the algorithmic efficiency of Amazon. When you factor in that the average Joann customer only visits 4-6 times per year vs 12-15 times, the challenge of maintaining large retail spaces becomes clear.”

What Happens Next

Joann’s closures could reflect a larger period of financial strife for many brick-and-mortar retailers.

Ryan said in the future, the retailers who succeed will have to target both online and in-person shoppers.

“Looking ahead to 2025, we’re witnessing what I term ‘retail Darwinism’ in action,” Ryan said. “The successful retailers of tomorrow will be those who master the “phygital” experience – blending physical and digital shopping in ways that justify the overhead of brick-and-mortar locations.”