Joann Fabrics to close 500 stores as JCPenney restructures retail operations
The retailer, founded in 1943, filed its second bankruptcy report for 2025 this week and needs to clean up its accounts. Meanwhile, JCPenney is restructuring its outlets following its merger with SPARC Group.
A Joann Fabrics store.
Retailers Joann Fabrics and JCPenney will close several hundred stores nationwide due to their financial struggles. Joann filed its second bankruptcy report of the year, the first being on January 15.
As a result, the brand, which originated in the 1940s, has announced the closure of at least 500 stores nationwide. "This has been a very difficult decision, given the significant impact we know it will have on our team members, customers, and the communities we serve," the company's management said in a statement.
The 500 Joann Fabrics stores set to close represent more than half of its 800 physical outlets. If fully approved, the measure will take effect this Saturday, February 15. The goal is to reduce its structure and fixed costs in an effort to clean up its finances.
The company has published a full list of the stores set to close for reference.
JCPenney merger and restructuring
The JCPenney closures are a result of its merger with SPARC Group, prompting the brand to eliminate an undetermined number of stores in various locations nationwide.
"While we have no plans to significantly reduce our store count, we expect a handful of JCPenney stores to close by mid-year," a company spokesperson told FOX Business.
According to SB360 Capital Partners, which manages the liquidation sales, one store will close in each of the following states: California, Colorado, Idaho, Kansas, Maryland, North Carolina, New Hampshire, and West Virginia.
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