Joann to close four Arkansas stores

Craft specialty store Joann is closing 500 stores, including four in Arkansas, as the retailer works through its second bankruptcy filing in less than a year. The 82-year-old crafts and fabric retailer said closing stores is part of efforts to ensure the best path forward.

Hudson, Ohio-based Joann will close two stores in Little Rock, one in Fort Smith and one in Jonesboro. The retailer said going-out-of-business sales began Feb. 15 with store closures occurring over the next few months.

“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 interim CEO Michael Prendergast said in a statement. “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.”

Joann first filed for bankruptcy protection in March 2024 to address a heavy debt load, but the company cited an “uncertain customer environment and shrinking sales” for its recent decision to seek a buyer. The bidder is Boston-based Gordon Bros Retail Bros., which has a history of acquiring distressed assets and selling the tangible and intangible assets separately.

Joann stores in Rogers and Fayetteville are among the 300 company locations to remain open, but the retailer could close all stores if it does not find a suitable buyer. The company employed about 19,000 people and had about 800 stores in 49 states in January.

Market insights company Numerator recently surveyed Joann shoppers and found that 80% were upset about the closure news, with 46% very upset. More than two-thirds of shoppers said the closure of their local Joann store could have a slight to significant impact on them.

The biggest reason consumers shop at Joann is for the sales and product selection of fabric and crafting supplies, according to 89% of the respondents. Also, 74% said if their Joann store closed they would likely shop at Hobby Lobby or Michaels for crafting and fabric. The survey also found that 44% said they would shop at Walmart, 24% would turn to independent stores, and 23% cited dollar or discount stores.