Major chain set to close hundreds of stores in US after going bankrupt for second time. Story in 10 points

Joann, the fabrics and crafts retailer, is closing more than half of its 800 stores in the coming months as it continues to navigate the bankruptcy process. In a statement to USA TODAY, Joann acknowledged the significant impact of this decision on its employees, customers, and the communities it serves, describing it as "very difficult."

The embattled retailer first filed for bankruptcy in March 2024 after securing around $132 million in new financing to put towards its $1 billion debt. Joann has confirmed that it plans to close 500 of its roughly 850 stores nationwide, according to USA Today.

ALSO READ: What is Presidents Day and why is it celebrated in US? Explained in 10 points

Here are ten things you should know in this story:

-Joann, which sells fabric and craft supplies to millions of Americans, is shuttering 500 of its shops across 49 states. Creative residents who love the brand have been urged to stock up on supplies before their local store potentially disappears.

-The brand first filed for Chapter 11 bankruptcy in March 2024. But it managed to keep all its stores open after emerging as a private company. However, its second filing in January, less than a year later, has forced the business to start closing its premises.

-The move, announced Wednesday, arrives amid a tumultuous time for Joann. 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.

ALSO READ: Firing and hiring in 24 hours: Hundreds of US nuclear warhead workers sacked, then re-hired as Trump overrules Musk

-"Since becoming a private company in April, the Board and management team have continued to execute on top-and bottom-line initiatives to manage costs and drive value,” Michael Prendergast, interim CEO of Joann, said in January.

-“However, the last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step," Michael added.

-Although the company’s statement did not provide a specific list of locations, court filings reveal stores are closing in all 50 states — with California, Florida, Indiana, Michigan, New York, Pennsylvania and Washington among those most heavily affected by the closures, according to CNN.

ALSO READ: Elon Musk to unveil Grok 3 chatbot 'smartest AI on Earth' today: Check release time and key details

-Joann blamed inventory issues that were “acute and unexpected" in its second bankruptcy filing last month. The company had previously revealed in court documents that it faced an “unexpected ramp-down, and, in some cases, the entire cessation of production” of some critical products.

-In California, residents will lose a whopping 61 stores, while in Florida, 36 are set to close. Meanwhile, Michigan, Ohio, and Pennsylvania are expected to lose 33 stores each. Other stores will shut down in Alabama, Arizona, Connecticut, and Colorado. Only Hawaii has been spared the loss of its Joann shops.

ALSO READ: Chase Bank to shut down all 4,700 locations across the US for 24 hours today. Here's why

-Joann is now seeking a sale of substantially all of its assets. Gordon Brothers Retail Partners, which recently bought much of Big Lots, is the stalking horse bidder at an undisclosed price. However, it could sell itself to another company if Joann receives a better offer.

-The company joins a growing list of struggling brick-and-mortar stores that are unable to stay financially viable in a changing consumer environment. Inflation has made Americans dial back on discretionary purchases.