Joann Fabrics to Close 500 Stores Nationwide Amid Bankruptcy Struggles

Joann, the beloved fabrics and crafts retailer, is making a tough decision to close more than half of its 800 stores across the United States. The company, which filed for bankruptcy for the second time in less than a year, is shutting down approximately 500 locations as part of its efforts to stay afloat. This move will impact communities in all 50 states, with Oregon and Washington among the affected regions.

Why Is Joann Closing Stores?

Joann’s decision to close stores comes after the company filed for Chapter 11 bankruptcy in March 2024. Although it initially emerged from bankruptcy as a private company, ongoing financial struggles forced it to file again just months later.

The retailer cited “acute and unexpected” inventory issues as a major factor in its latest bankruptcy filing. Some critical products faced production delays or complete stoppages, leaving the company unable to meet customer demand.

In court documents, Joann also revealed that potential buyers showed interest in acquiring the company but identified a significant number of underperforming stores that were unlikely to be included in any future plans.

Which States Are Most Affected?

The store closures will impact every state except Hawaii, with California, Florida, Indiana, Michigan, New York, Pennsylvania, and Washington seeing the highest number of closures.

• California: 61 stores closing
• Florida: 36 stores closing
• Pennsylvania: 33 stores closing
• Ohio: 33 stores closing
• Michigan: 33 stores closing

In Oregon, 15 stores are set to close, while one location in southwest Washington will also shut its doors.

Oregon and Washington Store Closures

Here’s a list of the Joann stores closing in Oregon and southwest Washington:

Oregon Locations:

• 2248 Santiam Highway SE, Albany, OR 97322
• 4005 Southwest 117th Street, Beaverton, OR 97005
• 10174 Southeast 82nd Avenue, Clackamas, OR 97086
• 932 Northwest Circle Blvd, Corvallis, OR 97330
• 1090 Northeast E Street, Grants Pass, OR 97526
• 7270 Northeast Butler Street, Hillsboro, OR 97124
• 2880 South 6th Street, Klamath Falls, OR 97603
• 4069 Northwest Logan Road, Lincoln City, OR 97367
• 1401 North Highway 99W, McMinnville, OR 97128
• 1611 Virginia Avenue, North Bend, OR 97459
• 1842 Molalla Avenue, Oregon City, OR 97045
• 732 Southwest 6th Street, Redmond, OR 97756
• 2122 Marcola Road, Springfield, OR 97477
• 1324 West 6th Street, The Dalles, OR 97058
• 180 Southwest Neptune Drive, Suite A, Warrenton, OR 97146

Southwest Washington Location:

• 700 Ocean Beach Highway, Suite 100, Longview, WA 98632

The Bigger Picture: Retail Struggles

Joann’s struggles are part of a larger trend affecting brick-and-mortar retailers. Inflation and changing consumer habits have forced many Americans to cut back on discretionary spending, hitting stores like Joann hard.

While some retailers experienced a boost during the pandemic, the return to normal shopping patterns has left many struggling to stay afloat. Other major retailers, including Kohl’s and Macy’s, have also announced store closures this year.

According to Coresight Research, more than 15,000 stores are expected to close in 2025—more than double the number from last year.

What’s Next for Joann?

Joann is currently seeking a buyer as part of its bankruptcy process. The company hopes that closing underperforming stores will make it more attractive to potential investors.

In a statement, Joann acknowledged the impact of its decision on employees, customers, and communities. “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,” a spokesperson said.

Conclusion

The closure of 500 Joann stores marks a significant shift for the crafting and fabrics retailer. While the company works to secure its future, customers in Oregon, Washington, and across the country will feel the loss of these community staples.

As the retail landscape continues to evolve, Joann’s story serves as a reminder of the challenges facing traditional brick-and-mortar stores in an increasingly digital world.