REDLANDS, Calif. — JOANN Fabric and Craft Stores is set to close approximately 500 locations nationwide as part of its ongoing Chapter 11 bankruptcy proceedings, with at least 60 closures affecting stores in California, including locations in Redlands and Riverside.
The Ohio-based retailer, a leader in sewing and craft supplies for more than 80 years, announced on Jan. 15 that it had filed for voluntary Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. The company aims to facilitate a court-supervised sale process to maximize business value, with Gordon Brothers Retail Partners, LLC serving as the “stalking horse” bidder.
JOANN officials emphasized that stores and its online platform, JOANN.com, will continue to operate as usual during the bankruptcy process, and employees will still receive pay and benefits. However, on Feb. 12, the company confirmed plans to shutter roughly half of its U.S. locations.
“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 JOANN spokesperson said in a statement. “Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for JOANN.”
The Redlands and Riverside stores are among those slated for closure, impacting local crafters, sewists, and DIY enthusiasts who have relied on the retailer for materials and supplies. The exact timeline for closures has not yet been disclosed, but affected stores are expected to begin winding down operations in the coming months.
Michael Prendergast, JOANN’s interim CEO, said the decision to file for bankruptcy was driven by ongoing retail challenges, financial constraints, and inventory issues.
“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,” Prendergast said. “We hope that this process enables us to find a path that would allow JOANN to continue operating as a going concern.”
As the bankruptcy case progresses, JOANN is seeking court approval to use cash collateral to support operations, including employee wages and benefits. The company has also invited alternative bids as part of its restructuring efforts.
Customers looking for updates on the closures and liquidation sales can visit JOANNRestructuring.com.
The full list of store closures is available online here.
