Joann to shutter 500-plus US stores, 31 in SoCal

Joann is packing up its yarns and paintbrushes at more than 500 stores across the U.S., including 31 stores slated to close across Southern California.

The struggling crafts retailer based in Ohio announced plans to close hundreds of stores after filing for Chapter 11 bankruptcy protection last month, the second time in a year, the Orange County Register reported.

The reason for the closures: sluggish consumer demand and inventory shortages, according to the firm.

Joann had sought Chapter 11 in March 2024, later emerging as a private company. But after operational challenges piled up, Joann filed for bankruptcy again in January.

It’s now looking to sell the business for an undisclosed price, according to the Register. And closing “underperforming” locations is needed to complete that process, it said in a Wednesday filing.

The company says it has a “stalking horse” bid agreement with Gordon Brothers Retail Partners, which recently saved between 200 and 400 Big Lots stores from being liquidated.

“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,” it continued.

Joann has around 800 stores in 49 states. The initial list of the roughly 530 stores to close includes 61 in California, plus outposts in Arizona, Colorado, Florida, Georgia, Illinois, Michigan, New York, Pennsylvania andTexas, according to its restructuring website.

Of the 31 shuttering in SoCal, 11 are in Los Angeles County, including outposts in Long Beach, La Verne, La Canada, Lakewood and Torrance.

Two locations will remain open in L.A. County, according to Columbus Business First.

The timeline for the store closures, or how many workers might be let go, was not disclosed. Joann’s Wednesday motion seeks court permission to begin the process.

Joann’s roots go back to 1943, with a single store in Cleveland, which grew into a national chain. Once known as Jo-Ann Fabric and Craft Stores, the company rebranded itself to “Joann” for its 75th anniversary.

The retailer’s troubles began when consumers backed off from spending on at-home crafts after the early pandemic boom. Joann has also faced rising competition from rivals Hobby Lobby, as well as bigger retailers like Target, which now sell art supplies and kits, per the Register.

— Dana Bartholomew