Joann Fabrics Announces Closure of 500 Stores Amid Second Bankruptcy Filing
Introduction Joann Fabrics, a prominent name in the crafts and fabrics retail industry, has announced plans to close approximately 500 of its 800 stores across the United States. This decision comes in the wake of the company's second Chapter 11 bankruptcy filing within a year, reflecting significant challenges in the retail sector. AP News Background: Financial Struggles and Bankruptcy Filings In March 2024, Joann Fabrics filed for Chapter 11 bankruptcy protection, aiming to restructure its debt and streamline operations. Despite efforts to revitalize the business, the company faced ongoing financial difficulties, leading to a second bankruptcy filing in January 2025. Interim CEO Michael Prendergast cited persistent inventory issues and a sluggish economy as primary factors contributing to the company's untenable debt situation. AP News Scope of Store Closures The planned closures will affect stores nationwide, with significant impacts in several states: California: 61 stores...