CALIFORNIA – Joann announced, February 12, that it was closing 500 stores nationwide, including 61 in California. 

According to a Worker Adjustment and Retraining Notification (WARN) sent to the Employment Development Department, 209 Joann warehouse employees are also being laid off in California effective March 31.

The store closure announcement comes a month after the company filed for Chapter 11 bankruptcy for the second time.

“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,” Joann’s said in a statement. 

Roughly 350 Joann stores will remain open nationwide.

The statement goes on to say that a careful analysis of store performance and future strategic fit for the company determined which stores should remain operating as usual at this time.

Tough times in retail

Joann’s interim CEO Michael Prendergast previously said the tough times in retail, along with financial struggles, and low inventory forced the company to file for bankruptcy.

“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,” said Prendergast.

Court documents show that Joann’s liabilities range from $1 billion to $10 billion.

The company said Gordon Brothers Retail Partners, LLC, the “stalking horse” bidder in the Chapter 11 filing intended to shut down the stores and sell everything in going-out-of-business sales.

At the time, Joann was looking for other offers and said it heard from parties who might want to keep the stores and online business running.

Store closure locations

According to court documents, Joann is planning to close these 61 stores in California:

RELATED: Popular SoCal surf and swim brand laid off 363 employees in CA – holding extra 60% off online sale