Joann Fabric and Crafts announced on Feb. 12 that it had filed a motion seeking court authority to begin closing 500 of its stores across the country in response to the company’s most recent bankruptcy. Among the stores to close is the one at 101 Twin City Mall in Crystal City.
The closures represent more than half of the national chain’s 800 stores across 49 states.
“After carefully reviewing all available strategic paths to address our ongoing industry, economic and financial challenges, Joann and its financial stakeholders determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business,” the company said on its new restructuring website, joannrestructuring.com. “Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann.
“Joann is committed to providing our customers – the sewists, quilters, crocheters, crafters and other creative enthusiasts we have served for more than 80 years – with great service and assortments and to supporting our thousands of team members across the nation throughout this process.”
The announcement comes after the retailer filed for Chapter 11 bankruptcy twice within a year, once in March 2024 and again last month. The company emerged from its 2024 bankruptcy as a private company.
Joann cited low consumer demand, increased overseas shipping costs and inventory shortages as the cause of the bankruptcies. The company said it is looking to sell the business and hopes closing underperforming locations will help with the sale.
The company statement also announced that, subject to court approval, Joann expects going-out-of-business sales will begin at stores on Saturday and could continue for several months. No timetable has been released for the final closure of the affected stores. The remainder of Joann stores are not impacted by this motion, and will remain open as usual, as will joann.com and the company’s mobile app.
“Once store closing sales begin, customers will have the opportunity to purchase our assortment at special prices. Only inventory available on site at those stores will be part of the closing sales,” the statement said. “A lot depends on the outcome of the court-supervised sale process, and our policy may be further updated as we progress through this process.”
The company also noted that as of Jan.15 the company had ceased sales of all gift certificates and gift cards. Gift cards are still being accepted for in-store purchases, but not for online shopping.
The Ballwin and Washington, Mo., stores have been slated for closure as well. The location at 6910 S. Lindbergh Blvd. in south St. Louis County will remain open for now.
