Joann files for bankruptcy; 500 stores to close by 2025
The company Joann has declared bankruptcy and plans to close 500 of its stores by the end of May 2025. The remaining 300 locations are set to cease operations by the end of the year. Although the online store has not been operational for almost two months, a final clearance sale is currently underway in physical stores.
Joann is a well-known chain of fabric and craft stores in the USA, which entered the market 80 years ago. It employs 23,000 people and has 800 stores in 49 states.
The end of a retail giant from the USA
The website dlahandlu.pl reports that Joann declared bankruptcy at the start of 2025, and now detailed plans for closing individual locations have been revealed. More than 250 Joann stores will cease operations before May 1, 2025.
Additionally, by the end of May, 500 locations will be closed, with the remainder shutting down by the end of the year. The online store stopped operating on March 3, 2025.
As of April 30, 2024, the company's total debt amounted to $540 million, roughly half of what it was before restructuring.
Joann began its operations in 1943 as Cleveland Fabric Shop. It went public in 1969 and was renamed Jo-Ann Stores Inc. in 1998. In 2018, the company underwent rebranding, focusing on crafts.
During the COVID-19 pandemic, the company faced criticism for refusing to close stores despite health concerns for customers and denying paid sick leave due to coronavirus. Furthermore, as the portal indicates, many American hospitals at that time rejected offers to purchase homemade masks.
The company hopes for a buyer of last resort
In 2024, Joann filed for bankruptcy protection. The company is attempting to sell its assets using the "stalking horse" method to avoid low offers.
No buyer has appeared yet, but the chain does not rule out the possibility that this might happen even after the stores are closed. American media remind us that such a fate has befallen many retail brands (e.g., Big Lots or Bed, Bath & Beyond), which reopened shortly after closing in a different form under new ownership.
American restaurant chain also facing closure
Joann is not the only American company facing serious problems. On March 31, 2025, the Hooters restaurant chain, known for its distinctive orange waitress outfits and chicken wings, also declared bankruptcy.
Despite this, the company will not cease operations, but—as reported by CNN—it plans to sell its 100 restaurants to two franchisee groups from Tampa and Chicago. These two franchisee groups already manage one-third of American Hooters locations.
The restaurants will continue to operate normally, although some locations may close during restructuring.
