JOANN, a national fabric and crafts retailer, announced plans on Wednesday to close approximately 500 stores across the United States.
It is part of its ongoing bankruptcy proceedings.
JOANN Fabric and Crafts bankruptcy
Big picture view:
The decision follows Joann’s second Chapter 11 bankruptcy filing within a year, driven by declining consumer demand and inventory challenges. The company initially sought bankruptcy protection in March 2024 and reemerged as a private entity, but ongoing financial struggles led to another filing in January.
JOANN stores closing in Georgia
By the numbers:
A dozen JOANN Fabric and Crafts stores were targeted for closing with about half of those being in metro Atlanta.
Here’s a look at that list provided by the company:
- Store No. 2534: 3055 Atlanta Highway 30606 Athens GA
- Store No. 1549: 9439 Highway 5 30135 Douglasville GA
- Store No. 1921: 2255 Pleasant Hill Rd Ste 200 30096 Duluth GA
- Store No. 1960: 965 N Point Dr 30022 Alpharetta GA
- Store No. 2005: 1630 Scenic Hwy N Ste O 30078 Snellville GA
- Store No. 2016: 250 Pavilion Pkwy 30214 Fayetteville GA
- Store No. 2359: 1380 Dogwood Drive 30013 Conyers GA
- Store No. 2364: 1074 Bullsboro Drive, Unit #6 30265 Newnan GA
- Store No. 2414: 540 A Lakeland Plaza 30040 Cumming GA
- Store No. 2247: 137 Golden Isles Plaza Parkway 31520 Brunswick GA
- Store No. 1891: 5080 Riverside Dr Ste 1300 31210 Macon GA
- Store No. 2490: 2951 Watson Blvd 31093 Warner Robins GA
History of JOANN Fabric and Crafts
The backstory:
Founded over 80 years ago in Cleveland, Ohio, Joann has grown to more than 800 stores across 49 states and a robust e-commerce presence. The company serves as a one-stop shop for sewing, fabric, and arts and crafts supplies, catering to hobbyists and creative professionals alike. Despite recent financial difficulties, Joann remains committed to providing creative enthusiasts with the materials and inspiration they need.
What they’re saying:
“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,” a company spokesperson said. “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.”
Interim CEO Michael Prendergast expressed appreciation for Joann employees and customers, saying, “On behalf of the Board and leadership, I want to thank the thousands of JOANN Team Members across the nation for their dedication to our customers and mission, especially in light of everything our company has gone through in recent years. We remain committed to continuing to support them and serving our customers – the sewists, quilters, crocheters, crafters, and other creative enthusiasts we have served for more than 80 years – during the process.”
Prendergast acknowledged the challenges the company has faced and the necessity of restructuring efforts. “Since becoming a private company in April, the Board and management team have continued to execute on top- and bottom-line initiatives to manage costs and drive value,” Prendergast said. “However, 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.”
What’s next:
Joann is now seeking to sell the business and has emphasized that closing underperforming stores is a necessary step in that process. Joann’s Chapter 11 proceedings are taking place in the U.S. Bankruptcy Court for the District of Delaware. The company has filed motions to ensure it can maintain operations, including paying employees and honoring customer commitments. Both Joann stores and its online platform, JOANN.com, remain open for business.
The Source: This article is based on information provided by JOANN Fabric and Crafts.
