This year's surge of U.S. store closings is raging on unabated, with sewing-crafts retailer Joann now planning to shutter just over 500 locations.
The Hudson, Ohio-based chain on Wednesday said it was closing more than half of its roughly 800-store fleet in an effort to downsize its footprint as part of its Chapter 11 proceeding. The company filed a list of the locations it plans to shut with the U.S. Bankruptcy Court in Wilmington, Delaware.
The decision by Joann, a seller of fabrics and crafting materials, comes just days after Nashville, Tennessee-area discounter Bargain Hunt announced it was liquidating as part of its bankruptcy and closing all 92 of its stores.
The group of companies that have either filed for Chapter 11 in 2025 or are closing stores this year continues to expand and includes Liberated Brands, Party City, Macy's and Kohl's.
Coresight Research predicted that 2025 will be a record-breaking year for store closings, expecting about 15,000 — roughly double last year's. Retailers continue to be battered by the impact of the pandemic, consumers cutting back their spending, online competition, and rising costs due to inflation and higher interest rates.
"As part of the ongoing Chapter 11 process and our efforts to maximize the value of the business, Joann has filed a motion seeking court authority to begin closing approximately 500 stores across the nation," the company said in an email to CoStar News on Wednesday.
'Best path forward'
It added that "a careful analysis of store performance and future strategic fit for the company determined which stores should remain operating as usual at this time. Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann."
Joann filed for Chapter 11 last month, the second time it had sought such protection. Joann first filed for bankruptcy in March last year, when it was loaded down with just over $1 billion in debt.
The next month a judge approved Joann's prepackaged reorganization plan, and the retailer emerged from Chapter 11 as a private company with its store fleet intact.
In January, Joann, an 80-year-old chain, said it was back in court "to facilitate a sale process." It named Gordon Brothers Retail Partners as its stalking-horse bidder. In the bankruptcy proceedings since then, Joann said it saw a need to close some locations.
“As the sale process progressed, and prospective bidders continued to conduct diligence and refine their potential bids, the debtors and their advisors were able to identify a subset of underperforming stores that are unlikely to be considered or included in any going concern bid,” Joann said in a court filing on Wednesday.
About 60 of the store closings are slated for California, with other big clusters in states such as Florida, Ohio, and Pennsylvania.