Joann, the fabric and crafts chain, plans to close about 500 of its stores across the U.S. — more than half of its locations nationwide — including dozens in California.
The 61 stores slated to be shuttered include those in Stockton and Manteca, as well as locations in Sacramento and Elk Grove.
In Southern California, four stores in San Diego County will close. Temecula, Hemet, Redlands, Riverside, Irvine and Orange are also slated to lose businesses.
The move, announced Wednesday, arrives amid a tumultuous time for Joann. Last month, the Hudson, Ohio-based retailer filed for Chapter 11 bankruptcy protection for the second time in a year, with the company pointing to sluggish consumer demand and inventory shortages as the cause.
Joann previously sought Chapter 11 in March 2024 and later emerged as a private company. It’s now looking to sell the business — and maintained in a filing Wednesday that closing “underperforming” locations is necessary to complete that process.
“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,” the company said in a statement sent to the Associated Press. “(But) right-sizing our store footprint is a critical part of our efforts to ensure the best path forward.”
Joann currently operates around 800 stores across 49 states. Besides California, the states set to lose stores include Arizona, Colorado, Florida, Georgia, Illinois, Michigan, New York, Pennsylvania and Texas. The retailer has established a restructuring website to keep customers informed of the upcoming changes.
When exactly those closures will take place and how many employees will be impacted has yet to be seen. Joann’s Wednesday motion seeks court permission to begin the process.
Joann’s roots date back to 1943, with a single storefront in Cleveland, Ohio. Formerly known as Jo-Ann Fabric and Craft Stores, the company rebranded itself with the shortened “Joann” name for its 75th anniversary.
Both of Joann’s bankruptcy filings arrived amid slowdowns in discretionary spending — notably with consumers taking a step back from at-home crafts, at least relative to the early COVID-19 pandemic boom. Joann has also faced rising competition in the crafts space from rivals like Hobby Lobby, as well as from larger retailers, like Target.
Joann has maintained that a sale of the business is the best path forward. The company says it has a proposed “stalking horse” bid agreement with Gordon Brothers Retail Partners.