Crafts retailer Joann to close more than 500 stores
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Fabric retail chain Joann, once a leading destination for DIY and crafts enthusiasts, is shuttering more than half its 800 stores as part of its bankruptcy restructuring plan, including 20 in Indiana.
Closing locations will “ensure the best path forward” as it looks for a buyer, the company said in a statement on its restructuring website.
The 533 stores on the closure list span 48 states, with California, Florida, Illinois, Michigan and Pennsylvania among those losing the most locations.
Among the stores designated for closure in bankruptcy filings are two in Indianapolis: one at 1361 W. 86th St. and another at 10030 E. Washington St.
The closure list also includes Joann stores in Bloomington, Columbus, Kokomo, Muncie and Richmond.
The company did not say how many employees will lose their jobs because of the closures and did not respond to The Washington Post’s request for comment.
The announcement comes about a month after the Hudson, Ohio-based chain filed for Chapter 11 bankruptcy. It was the second time within a year that Joann filed for such protections.
The company attempted to improve its inventory and profitability, but it had a hard time finding enough cash to maintain operations, it said in bankruptcy court filings last month.Joann had$615.7 million in total funded debt obligationsand just$8.4 million in cash on hand, according to court documents.
Gordon Brothers Retail Partners, a lender that has been involved with a number of troubled retailers – most recently Big Lots – put forth an initial bid for Joann. The retail chain has said it is hoping for additional offers.
Joann is among a string of specialty retailers to file for bankruptcy or announce store closures in recent months. In addition to grappling with a comedown after a pandemic spending boom fueled by homebound consumers, niche retailers face pressure from bigger, more efficient rivals such as Amazon and Walmart, as well as e-commerce sites such as Shein and Temu.
Store closures in 2024 reached 7,325, the highest number recorded since 2020, which was close to 10,000 stores, according to a recent report from Coresight Research. The retail data firm projects that 15,000 stores will close this year as more retailers file for bankruptcy, liquidate and cull underperforming locations.