Joann, the well-known fabrics and crafts retailer, has announced plans to close approximately 500 of its 800 stores nationwide as part of its restructuring efforts following its recent bankruptcy filing. The decision marks a significant shift for the 81-year-old company, which has long been a go-to destination for sewing enthusiasts, crafters, and DIY hobbyists.
The closures come as Joann struggles
to adapt to changing consumer habits, increased competition from online retailers, and the broader challenges facing brick-and-mortar stores in the retail sector. While the company has not yet released a full list of locations slated for closure, the move is expected to impact communities across the country, particularly in areas where Joann has been a staple for crafting supplies.
Joann filed for Chapter 11 bankruptcy in early 2024, citing financial difficulties exacerbated by the COVID-19 pandemic and the subsequent economic pressures. Despite a surge in demand for crafting materials during the pandemic, as people turned to hobbies like sewing and DIY projects while staying home, the company has faced ongoing struggles with debt and declining foot traffic in its physical stores.
The restructuring plan aims to reduce Joann’s debt load and refocus its operations on a smaller, more profitable store footprint. The company has emphasized that it will continue to operate its remaining 300 stores and maintain its online presence, ensuring that customers still have access to its wide range of fabrics, yarns, and crafting supplies. Additionally, Joann has stated that it will honor customer gift cards, rewards programs, and returns during the transition.
The announcement has sparked mixed reactions from customers and employees alike. Longtime patrons have expressed sadness over the loss of a beloved retailer in their communities, while employees face uncertainty as store closures could result in significant job losses. Joann has not yet disclosed how many employees will be affected by the downsizing but has indicated that it will provide support and resources to those impacted.
The challenges facing Joann reflect broader trends in the retail industry, where traditional stores are increasingly struggling to compete with e-commerce giants and shifting consumer preferences. For Joann, the path forward will depend on its ability to streamline operations, enhance its online offerings, and adapt to the evolving needs of its customer base.
As the company moves forward with its restructuring, the crafting community will be watching closely to see how Joann navigates this pivotal moment in its history. While the closure of 500 stores is a significant setback, it also represents an opportunity for the retailer to reinvent itself and emerge as a more resilient and focused business in the years to come.