National Retailer Set to Close 500 Locations, Impacting 2 in Central NY and 24 Across New York State

Fabrics and crafts chain Joann on Wednesday announced a plan to close approximately 500 stores nationwide, including 24 in New York state and two in Central New York.

The Joann store in the Fayetteville Towne Center is on a closing list released by the company, as is the store on Clinton Street in Cortland.

The Joann store on state Route 31 in Clay is not in the closing list.

The move would close more than half of the approximately 800 U.S. stores the company operates.

A company statement read, in part, “As part of the ongoing Chapter 11 process and our efforts to maximize the value of the business, Joann has filed a motion seeking court authority to begin closing approximately 500 stores across the nation. 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.”

The move comes just a few weeks after the company declared bankruptcy for second time in a year, citing struggling sales and “acute and unexpected” inventory issues.

While no timetable for the closings was announced, the company said that it filed a motion with bankruptcy court to begin the process of closing the stores, and a hearing on the motion is scheduled for Friday. If approved, going-out-of-business sales at the stores slated to close could begin as soon as Saturday and could continue for months.

The company is seeking buyers. Gordon Brothers Retail Partners, which recently bought a portion of Big Lots in bankruptcy, is currently the leading bidder at an undisclosed price.

Joann is seeking alternate bids, according to an FAQ on its website, and it’s possible a new owner could keep the business alive. Should Gordon Brothers emerge at the highest bidder, however, it has indicated that it plans to pursue a liquidation of the company.