Joann Fabrics to Shut Down 500 Stores Amid Bankruptcy Troubles

Joann Fabrics, a well-known name in the craft and fabric retail industry, has announced that it will be closing 500 of its 800 stores across the United States. The news comes after the company filed for bankruptcy for the second time within a year, signaling ongoing financial struggles. The closures will significantly impact employees, customers, and the communities where these stores have been a staple for decades.

A Difficult Decision for Joann

Joann Fabrics has been a go-to destination for hobbyists, designers, and DIY enthusiasts for years. However, the company has been battling financial instability, leading to its decision to shut down more than half of its stores. In a statement to USA TODAY, Joann described the closures as "very difficult," acknowledging the hardship this move will bring to many.

The company has not yet announced a specific timeline for the closures, but court filings suggest that Joann is prepared to move forward with the process immediately. Customers and employees are now left waiting for further updates on the future of the remaining stores.

Connecticut Stores Among the First to Close

Among the stores affected by Joann's financial troubles are 10 locations in Connecticut. These stores, which have served local communities for years, are set to shut down soon. According to court filings, the Connecticut stores that will close include:

• Torrington - 39 South Main St.
• Norwich - 117 Salem Tpke.
• Southington - 774 Queen St.
• Newington - 3105 Berlin Tpke.
• Milford - 1405 Boston Post Rd.
• Hamden - 2300 Dixwell Ave.
• Manchester - 1440 Pleasant Valley Rd.
• Enfield - 136 Elm St.
• Clinton - 274 E Main St.
• Brookfield - 143 Federal Rd.

The closure of these locations marks a major shift for Joann Fabrics in Connecticut, where it has built a loyal customer base over the years.

Why Is Joann Fabrics Closing Stores?

Joann Fabrics has been struggling financially for some time. In January 2025, the company warned that it might go out of business if it did not secure a stronger acquisition bid. This was after its first bankruptcy filing in March 2024 failed to resolve its financial troubles.

In an attempt to stay afloat, Joann aimed to reduce its debt by approximately $505 million while securing $132 million in new funding. However, with mounting losses and weak retail sales, the company was unable to find a sustainable path forward.

Now, Joann Inc. has turned to the courts to approve a sale of its business. Gordon Brothers Retail Partners LLC has been assigned to oversee the auction process, which will determine the fate of the remaining stores and assets.

Impact on Employees and Customers

The closure of 500 stores means that thousands of Joann Fabrics employees will lose their jobs. For many workers who have spent years with the company, this comes as a devastating blow. Customers, too, will feel the impact, as they will lose easy access to craft supplies, fabrics, and other materials that Joann has provided for decades.

While Joann has stated that it remains committed to serving its customers, the significant reduction in store locations means that shoppers will need to find alternative retailers for their crafting needs. Many loyal customers are already expressing their disappointment over the closures, especially in areas where Joann was the primary craft supply store.

What’s Next for Joann?

With bankruptcy proceedings underway, the future of Joann Fabrics remains uncertain. If the company successfully restructures its debt and secures a buyer, it may continue operating in a reduced capacity. However, if financial troubles persist, more store closures could follow.

For now, customers and employees will have to wait for further announcements regarding the store shutdowns and potential liquidation sales. Those who rely on Joann for crafting supplies may need to start looking at other options as the company navigates this challenging period.

Joann Fabrics has been a beloved brand for generations, and its decline is a sign of the struggles facing many brick-and-mortar retailers in today's competitive market. As online shopping and changing consumer habits continue to shape the retail industry, traditional stores like Joann must adapt or risk disappearing altogether.