Fabric and crafting store Joann is set to close more than half of its 800 stores as part of the bankruptcy process.
The company, which filed for Chapter 11 protection a second time last month, had previously it would continue to operate its brick-and-mortar locations as it searched for a buyer.
In a court filing this week, the company said it had identified 500 underperforming stores to close in a cost-cutting measure.
The affected stores are located in all 50 states — including 18 in New York, 10 in Connecticut and 6 in New Jersey.
“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,” the company said in a statement on its restructuring website. “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.”
Gordon Brothers, which recently took over Big Lots, has emerged as a contender to buy the company and would likely close the remaining stores, according to Fast Company.
Joann first filed for Chapter 11 in March 2024 but weeks later turned private and kept its doors open.
“Acute and unexpected” inventory issues were cited in the second bankruptcy filing in Jan. 2025.
“The last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step,” interim CEO Michael Prendergast said in January.
The company has a court hearing Friday where it will seek permission to stop honoring gift cards shortly after its sale is approved, according to Axios.