Joann Fabric to close two stores in the Northland
Struggling fabric and crafts seller Joann plans to close about 500 of its stores across the country, including two in the Northland. The news broke on Wednesday, the Joann Fabric stores in Hibbing and Bemidji will close.
Joann’s in Hibbing is in the Irongate Plaza. We reached out to employees at the store, and although they were disappointed with the news, they were not able to comment.
The company told WDIO that if the court approves a motion, going out of business sales will begin this weekend and could last several months. The store in Duluth, Minnesota is not on the list of closures.
Last month, the Hudson, Ohio-based retailer filed for Chapter 11 bankruptcy protection for the second time within a year, with the company pointing to issues like sluggish consumer demand and inventory shortages.
Joann previously sought Chapter 11 in March 2024 and later emerged as a private company. But after operational challenges continued to pile up, Joann filed for bankruptcy again in January. It’s now looking to sell the business — and maintained in a filing Wednesday that closing “underperforming” locations is necessary to complete that process.
“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,” the company said in a statement sent to The Associated Press. “(But) right-sizing our store footprint is a critical part of our efforts to ensure the best path forward.”
Joann currently operates around 800 stores across 49 states. The initial list of the roughly 500 locations it’s looking to close can be found on the company’s restructuring website — spanning states including Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, New York, Pennsylvania, Texas and more.
When exactly those closures will take place and how many employees will be impacted has yet to be seen. Joann’s Wednesday motion seeks court permission to begin the process.
The Associated Press contributed to this story.