One month after its second bankruptcy filing within a year, the craft retailer Jo-Ann is preparing to close approximately 530 stores across more than 40 states.
Nexstar reports the company planned to keep all its roughly 800 stores open throughout the bankruptcy process that began last month – the company previously filed for bankruptcy in March 2024, but was exit the process quickly and then transitioned into a private company.
“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,” said a company spokesperson. “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 Jo-Ann.”
Jo-Ann traces its roots to 1943 when three pairs of German immigrant couples opened the Cleveland Fabric Shop in Cleveland, Ohio. The company changed its name to Jo-Ann Fabrics in 1963, and in 1969 it became a publicly held corporation traded on the American Stock Exchange as Fabri-Centers of America Inc. The company blamed rising inflation and the disruptions created by the Covid-19 pandemic for its current financial difficulties.
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