Joann is closing 500 of its 800 stores in bankruptcy
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Bankrupt arts and crafts retailer Joann is closing about 500 of its 800 stores, the company announced Wednesday.
The big picture: The retailer is pursuing a bankruptcy sale of its assets but has determined that many of its locations won't attract a buyer, its lawyers said Wednesday in a court filing.
Driving the news: The company asked a bankruptcy judge for permission to "immediately" begin store closing sales at those locations after the court signs off, the attorneys said.
- Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for JOANN," the retailer said on its restructuring website.
What they're saying: "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 to Axios.
- "A careful analysis of store performance and future strategic fit for the Company determined which stores should remain operating as usual at this time," the statement said.
Zoom in: Joann filed for Chapter 11 bankruptcy protection in January, marking its second time in bankruptcy in less than a year.
- In restructuring circles, a second bankruptcy is colloquially known as Chapter 22.
What's next: Joann is scheduled for a hearing on Friday, and is requesting the court's permission to stop honoring gift cards two weeks after the court approves the company's sale.
The bottom line: Seven weeks into 2025, store closings are on the rise.
- Big Lots, Party City, Kohl's and Macy's are among the retailers currently holding liquidation sales.
- JCPenney confirmed to Axios that it is also closing some stores by mid-year.
Joann store closing list 2025
The retailer posted a list of stores included in its closing motion on its restructuring website. You can also see the list in the document below.
Editor's note: This story was updated with the closing list.
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