ALBUQUERQUE, N.M. —
JoAnn Fabrics, a popular craft store, announced that it will be closing 500 of its stores, leaving only 300 open nationwide. The company says that the move is necessary as they navigate the bankruptcy process.
The company filed for bankruptcy last month, which was the second time in a year. They first filed for chapter two bankruptcy in March of 2024, but were able to stay afloat by becoming a private company.
The retailer blames the current filing on severe and unexpected inventory issues and the company has yet to release a full list of which stores will be closing.
On Wednesday, Joann Fabric and Craft said it planned to close 500 stores, including six in New Jersey, as part of the ongoing Chapter 11 process.
If approved, the plan would leave five Joann stores in New Jersey.
Joann sought court authority for the move, which a spokesperson said was based on “careful analysis of store performance and future strategic fit” for the company.
“This was a very difficult decision to make, given the major impact we know it will have on our Team Members, our customers and all of the communities we serve,” a company statement said.
“Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann.”
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