Joann Fabrics Bankruptcy Update

Joann Fabrics, the popular craft retailer, has begun closing a number of its store locations across the United States following its Chapter 11 bankruptcy filing in March 2024. Joann faced a slowdown in consumer spending and increased operating costs. The surge in crafting during the pandemic also subsided, impacting their sales. The company successfully exited bankruptcy in April 2024 after a court-approved restructuring plan that reduced its debt by approximately $505 million. As part of this process, Joann transitioned from a publicly traded company to private ownership.

The company confirmed to Retail Dive that six locations will be shuttered, including stores in Holyoke, Massachusetts, and Ithaca, New York. Despite the bankruptcy proceedings, Joann maintained operations across its more than 800 stores nationwide, including those in North Carolina, and continues to serve its customers.

Current Joann Fabric Location Closings:

• Burlington, Iowa
• Owings Mills, Maryland
• Holyoke, Massachusetts
• Ithaca, New York
• Hickory, North Carolina
• Williamsport, Pennsylvania