Craft specialty store Joann is facing major changes as it announced the closure of 500 stores, including four in Arkansas. This decision comes as the retailer navigates its second bankruptcy filing in less than a year. The closures are part of Joann’s efforts to ensure a successful future.
The Hudson, Ohio-based company will be closing two stores in Little Rock, one in Fort Smith, and one in Jonesboro. Going-out-of-business sales began on February 15, with stores expected to shut their doors over the next few months.
In a statement, Joann’s interim CEO Michael Prendergast expressed the difficulty of this decision due to its impact on employees, customers, and communities. The company initially filed for bankruptcy in March 2024 to address debt, but recent financial challenges prompted the search for a buyer. Boston-based Gordon Bros Retail Bros is considering purchasing Joann’s assets.
Despite the closures, stores in Rogers and Fayetteville will remain open for now, but the future of all locations is uncertain without a buyer. A recent survey by Numerator found that 80% of Joann shoppers are upset about the closures, with many citing the impact the store has on them.
Most shoppers visit Joann for sales and product selection, with many stating they would switch to other craft stores like Hobby Lobby or Michael’s if Joann’s closed. The survey also revealed a potential shift to Walmart, independent stores, and discount stores if Joann is no longer an option.
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