Joann to close 500 stores in bankruptcy process

A logo sign outside of a Joann retail store is seen in Arlington Heights, Ill., Wednesday, Jan. 15, 2025. (AP Photo/Nam Y. Huh)

Craft retailer Joann Fabrics is closing 500 stores, some in Alabama, as it tries to emerge from bankruptcy.

USA Today reports that the stores in Montgomery, Tuscaloosa and Florence will be among those closing across 49 states.

Following the closures, Joann will be left with about 300 stores.

Joann filed for bankruptcy last month for the second time in a year.

It first filed for Chapter Eleven in March 2024, but was able to stay afloat after becoming a private company.

The retailer blames this current filing on severe and unexpected inventory issues.