Joann Fabrics Files for Bankruptcy (Again): 7 Stores Already Impacted

For the second time in less than a year, Joann Inc., formerly Jo-Ann Fabrics, filed for Chapter 11 bankruptcy protection.

The company will likely get sold to Gordon Brothers Retail Partners LLC — unless someone else purchases the business before then. If Joann is one of your favorite places to save money shopping for crafts and fabric, you may be wondering what this means for the store’s future.

Keep reading to learn everything we know about Joann's second bankruptcy filing and which stores have already been impacted.

Joann Inc. previously filed for bankruptcy in March 2024 due to declining sales. The company acquired $132 million in new financing in hopes of reducing its debt by over $500 million.

In April 2024, a judge approved restructuring for the company, and Joann Inc. exited bankruptcy successfully without closing any locations. Still, the company reported that they owed over $133 million to suppliers and $26 million monthly in rent, a feat they thought they could overcome.

Joann Inc. blames the second Chapter 11 filing on declining sales, inventory shortages, high inflation, increased competition, and supply chain disruptions. Product shortages were a major problem, resulting in an unexpected sales decrease and increasing debt. They still owed $615 million.

“After carefully reviewing all available strategic paths, we have determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business,” said CEO Michael Prendergast. “We hope that this process enables us to find a path that would allow Joann to continue operating as a going concern.”

While the company hopes to keep its stores and online sales open, there have been some locations that have already closed, and more closures could come. Here’s where stores have already been affected and what to expect next.

Located at 10377 Reisterstown Road, the Joann store in Owings Mills closed in January and was removed from the company website.

The closest Joann’s shoppers can still visit is in Columbia, about 20 miles away. Maryland still has 14 locations throughout the state.

The Joann store at 2267 Northampton St. in Holyoke also closed in January. Now, the closest Joann’s to this area is in Springfield, Massachusetts. You can find 19 other locations throughout the state.

Customers in Ithaca lost their store, previously located at 2309 N. Triphammer Road. Now, the nearest location is about 50 miles away in Syracuse. There are also stores in Albany, Rochester, and New York City, among others.

Residents of Hickory can no longer stop by the location at 2102 U.S. Hwy 70 SE. Now, if they want to visit a Joann’s store, they must travel 50 miles to Charlotte. There are 15 stores remaining throughout North Carolina, including Raleigh, Greensboro, and Durham.

Previously located at 3200 Agency St., this store closed in January 2025 after liquidation sales of up to 90% off. There are 11 others throughout Iowa for customers to visit.

The Joann’s at 2481 E State St. in Hermitage closed after the Chapter 11 filing, making the closest location in Erie about 60 miles away. There are still plenty of other Joann’s throughout Pennsylvania — 40 stores remain open.

Pennsylvania was faced with two closures. Their Williamsport location at 1746 E 3rd St. also shut its doors. The next closest store in the state is 60 miles away in State College, so it may be best to shop at Joann’s online if this was the store you shopped at.

While Joann Inc. wants to keep stores open, they can only do that if they receive a buyer and approval from the court. Without a buyer, they’ll have to liquidate all assets through Gordon Brothers Retail Partners LLC, the same company that now owns Big Lots.

For now, most stores will continue operating as usual. But, if Gordon Brothers takes over, they’ll likely start the liquidation process, which means customers may see huge sales. Workers may see layoffs.

With Joann Inc. filing for Chapter 11 bankruptcy for the second time in less than a year, it’s clear that the craft store is facing ongoing financial challenges. While they hope a sale can lead to stores staying open, the future is unknown.

While some stores have closed, Joann Inc. recently opened a new store in Great Falls, Montana, and remodeled a store in Maplewood, Minnesota. Make sure to use one of the best cash back credit cards if you stop by and shop for crafts and fabric.