Joan announced Wednesday that more than half of its stores across the country will be closing after the fabric and craft retailer filed for a second bankruptcy in less than a year.
Retailers have closed around 500 of their 800 stores, and “sizing our store's footprints is an important part of our efforts to ensure the best path forward.” The company's spokesperson said in a statement.
“This was a very difficult decision given the huge impact it has on the team members, our customers and all the communities we serve,” a spokesman for Joan told the post.
CNN has been reported previously Store closed.
The store is expected to close in all 50 states, with California, New York, Florida, Indiana, Michigan and Pennsylvania losing most of its locations, according to court filings.
Fabrics Store first filed for bankruptcy in March 2024, but after a few weeks it left all its stores open and emerged as a private company.
Last month, Joanne's interim chief executive Michael Prendagast denounced his second bankruptcy filing for a challenging retail environment as he thwarted shoppers inflation and sales.
The company also denounced the “acute and unexpected” inventory issues, according to the filing.
Prendergast said last month that the company was looking for new buyers.
“After carefully considering all available strategic paths, we said that starting a court-teached sales process is the best course of action to maximize the value of the business. I've decided,” Prendergast said.
“We hope this process will help Joan find a path that will allow him to continue working as an ongoing concern,” he added.
When a potential bidder reviewed the company, “The debtor and his advisors were able to identify a subset of low-performing stores that were not considered or likely to be included in the bid of concern.” court documents stated.
With stubborn inflation heavy on the industry, Joan isn't the only retailer struggling with poor sales.
Inflation has shown no signs of cooling anytime soon, up up by up to 3% last month, according to the Bureau of Labor Statistics' Consumer Price Index released Wednesday.
The department store has been hit particularly hard by tired shoppers, with Coles and Macy's planning to close their stores again this year.
