News Summary
Joann, the popular fabric and craft chain, has announced plans to close approximately 500 stores across the U.S. due to declining sales and increased competition. This move comes as the company faces its second Chapter 11 bankruptcy in under a year, with significant debts contributing to its challenges. The closures will be felt in many communities, particularly in states like California, impacting local customers who rely on the retailer for crafting supplies. Analysts express concern about Joann’s future prospects as it seeks to resize its retail footprint.
Joann, Ohio – The fabric and craft chain Joann is set to close approximately 500 stores across the United States, which accounts for more than 60% of its retail outlets. This closure announcement comes as the company faces its second Chapter 11 bankruptcy in less than a year, stemming from persistent declines in sales and a dwindling market share.
The decision to shut down a significant portion of its locations is indicative of Joann’s struggles with competition from online retailers and rivals such as Hobby Lobby and Michaels. The impact of these closures will be felt widely, particularly in states like California, which includes local stores in Glendale, La Cañada Flintridge, and Huntington Beach among those slated for closure.
Joann is seeking court approval to reduce its physical footprint across almost every state, concentrating on areas where stores have underperformed. In March 2024, Joann filed for bankruptcy protection, citing about $1 billion in long-term debt but initially maintaining its 800-store network. However, accumulating inventory challenges, coupled with suppliers hesitating to engage with a distressed company, led to an increase in “shabby” stores filled with out-of-stock items.
Retail analyst Neil Saunders commented on the situation, noting that Joann’s high levels of debt greatly impair its recovery prospects. With the ongoing bankruptcy proceedings, the company aims to “right-size” its store portfolio in a bid to adapt to evolving market conditions and consumer demands.
As of January 2025, Joann recognized the formidable obstacles presented by the current retail landscape, engaging in a court-supervised sale process designed to maximize business value amid declining performance. The major store reduction resonates with Joann’s ongoing difficulties in adjusting to market changes.
The GA Group assumed control of Joann following the bankruptcy filing and initiated store closing sales in early March, offering discounts of 70% to 90%. In a related measure, Joann has ceased accepting gift cards as it moves towards winding down operations, with merchandise only available at existing physical locations.
The upcoming closures are likely to impact local communities, especially in rural areas where Joann serves as a vital source for crafting supplies. Many former customers and local business owners have expressed sentiments of sadness and concern, recognizing the loss of Joann as an affordable outlet for fabric and crafting materials.
Joann’s history is marked by numerous charitable contributions and community events, which have further intensified the emotional response to the impending store closures. The closures align with a broader trend in 2025, where it is predicted that over 15,000 stores will shut down nationwide, more than double the number from the previous year.
As the retail sector evolves, competitors like Hobby Lobby, which operates around 1,000 locations, and Michaels, with over 1,200 stores across the U.S. and Canada, continue to maintain their presence in the market. Community members are voicing concerns over the potential decline in creative outlets tied to Joann’s closures, contemplating the adverse effects on crafting, local businesses, and social gatherings previously reliant on affordable crafting supplies.
The developments surrounding Joann’s store closures illustrate the ongoing challenges faced by brick-and-mortar retailers amid shifting consumer behavior, prompting discussions on the future viability of traditional retail locations in an increasingly digital landscape.
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Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
