Hudson, OH Joann Fabrics, a leading retailer in crafts and sewing supplies, has announced plans to close over 500 stores across the United States as part of a major restructuring effort. The move is aimed at stabilizing the company’s finances after facing declining sales and increased competition in the retail sector.

According to ABC10, the closures will impact stores in multiple states, with a full list of affected locations expected to be released in the coming weeks. Early reports suggest that several branches in New York, Ohio, and California will be among those shutting their doors.

USA Today noted that Joann’s struggles reflect broader challenges in the retail industry, as brick-and-mortar stores face pressure from online competitors and changing consumer habits. The company, taken private in a $1 billion deal in 2011, has been grappling with debt and declining foot traffic in recent years.

The closures represent approximately 25% of Joann’s total U.S. locations, signaling one of the most significant downsizing efforts in its history. In a statement, Joann executives assured customers that the company will continue to operate online and maintain its remaining stores, focusing on streamlining operations and enhancing the customer experience.

Local communities have expressed concern about the closures, particularly in smaller towns where Joann stores serve as vital hubs for crafters, quilters, and small business owners.

Despite the downsizing, Joann has pledged to continue investing in its core products and customer services, with hopes that the restructuring will position the company for long-term success in the increasingly digital retail environment.