Craft store chain forced to shutter more of its 800 stores as retail demolition continues
A beloved craft and fabric store with a history of more than 80 years has quietly closed several locations across the country in recent months.
Joann, which operates in nearly every U.S. state, recently closed six of its 815 stores. Until 2018 it was known as Jo-Ann Stores, but rebranded as ‘Joann’ to move beyond fabrics and embrace a wider range of crafts.
Shoppers affected by the closures can get deep discounts during the liquidation sale, with discounts ranging from 50 to 90 percent at affected locations.
The affected stores are in Burlington, Iowa; Owings Mills, Maryland; Holyoke, MA; Ithaca, New York; Hickory, North Carolina; and Williamsport, Pennsylvania.
Joann filed for bankruptcy last March after sales growth fizzled out during the pandemic, leaving the retailer with $1.2 billion in debt.
It emerged from bankruptcy the following month – with 815 stores in 49 states – after creditors agreed to forgive $505 million in debt in exchange for ownership of the company.
Joann is the latest retailer to face challenges after a sales boom during the pandemic. As Americans head back to work, the surge in home crafting has slowed significantly.
Home organization specialist The Container Store suffered the same fate and filed for bankruptcy last month.
Joann, which operates in nearly every U.S. state, recently closed six of its 815 stores
Joann took over the Jo-Ann’s name in 2018 and revamped the stores, but struggled to sell after a surge in sales during lockdowns
Despite the closures, Joann insists it has no plans for widespread closures or bankruptcies.
The six Joann locations “are being closed as part of the routine evaluation and optimization of retail locations,” Joann’s director of corporate communications Amanda Hayes told Retail Dive.
She added that the company “has also opened new and remodeled locations in recent months, including new stores in Great Falls, Montana and Maplewood, Minnesota.”
Joann’s closures come after a widespread “retail apocalypse” last year, which saw major companies file for bankruptcy and brick-and-mortar stores close en masse.
Through mid-December, US retailers have closed 7,300 stores – almost 60 percent more than in 2023.
The most recent major retailer bankruptcy was Container Store, which filed for Chapter 11 protection on December 22. There is no news about the company yet.
The store – known for its homewares including closet organizers and storage bins – has been in business for 46 years.
Despite getting a boost from Marie Kondo’s hit Netflix show “Tidying Up” during the Covid-19 pandemic, the chain has suffered mounting losses in recent years.
Party City will immediately close all of its stores, ending nearly forty years of existence
Earlier that month, Big Lots said it would suspend sales at all its U.S. stores after filing for bankruptcy in September.
The company initially said it would close all of its 963 remaining locations after a sale to a private equity firm fell through, but has since found an investor to keep between 200 and 400 open.
Meanwhile, after nearly four decades as an American retail institution, Party City announced last week that it would close all of its 850 stores in the coming weeks.
US department store Macy’s also announced it would close 65 locations across the country before the end of January.
There are fears that the carnage will continue into 2025.