Joann fabric stores closing: Thousands of Jobs at Risk in the US

One of the largest fabrics and craft chain in the US, Joann preparators made a big announcement claiming that they will shut down approximately 500 of their service locations out of the total 850 places the service in the United States affecting thousands of jobs. This comes after the company recently filed for bankruptcy in January. 

The company has filed for bankruptcy for the second time in less than a year period. The company filed for bankruptcy for the first time in March 2024, following which it converted itself to a private firm. In a statement released by the company following the announcement, they said, “right sizing our store footprint is critical part of our efforts to ensure the best path forward.” 

However, in January last month when the company filed for bankruptcy again, they blamed inventory issues that were acute and unexpected leading to the decision. The company stated that they faced an unexpected ramp-down and even an entire cessation of production.  

A spokesperson from Joann preparators stated that, "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."

Joann store closing list

The company although stated the closing of their stories, they did not shed light on the locations they are planning to shut down. According to sources, approximately 50 states will be affected by this decision, which may include California, Florida, Indiana, Michigan, New York, Pennsylvania and Washington.  

Joann, established in 1943, is one of the biggest multichain stores providing goods and materials related to sewing, knitting, crocheting, crafting and decorating. The Ohio based company reports that they are between $1billion and $10billion in debt.  

Although Joann announced their shutdown in light of bankruptcy, it is going to affect thousands of US nationals who are dependent on the company for their stitching goods. As the news burst out on the internet, social media users expressed their sadness over the shutting down of the stores.  

“I’m going to miss my job. I love my regular customers. They are the sweetest people. I hate the fact my store is closing. Not only am I losing my job. I’m losing my craft store,” Sara Ellis a user wrote.  

Another user named Karen Duncan stated, “The store that I go to will be closing down but there's another one about the same distance away that is staying open it is the only one staying open in New Hampshire we had eight of them so sad.”