Joann, the faltering national fabric and craft retailer, announced plans to shut its location at 225 Tennant Station Way in Morgan Hill. The closure is one of approximately 500 across the United States, which will cut the number of stores by more than half.
At least 12 of the shutdowns will be in the Bay Area, according to the company’s bankruptcy announcement.
The decision posted last week comes as the Ohio-based company navigates financial turmoil. In January, Joann filed for Chapter 11 bankruptcy protection for the second time in less than a year, citing declining consumer demand and supply chain difficulties.
After initially seeking court protection in March 2024, Joann restructured as a private company, but ongoing operational struggles led to the second filing earlier this year. Now, as the company explores a potential sale, it stated in a court filing that closing “underperforming” locations is a necessary step in that process.
“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,” a Joann official said in a statement. “Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward.”
“We anticipate the store closures to occur over the next few months, although some stores may close, within a shorter or longer time period,” the company official said.
Joann currently operates around 800 stores across 49 states. A full list of the approximately 500 stores set to close is available on the company’s restructuring website, with affected locations spanning states such as Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, New York, Pennsylvania and Texas.
The JOANN Fabric and Craft store is located at 225 Tennant Station in Morgan Hill. The Bay Area stores slated for closure are located in Corte Madera, San Mateo, Redwood City, Concord, El Cerrito, Dublin, San Leandro, Daly City, Cupertino, Santa Rosa, Rohnert Park.
The store on Almaden Expressway in San Jose will remain open for now, it appears. However a statement by liquidators Gordon Brothers suggests that Joann, which has been a staple in the crafting community since its 1943 founding, could cease to exist entirely.
“Gordon Brothers has indicated that it intends to pursue a liquidation of the Company and conduct going out-of-business sales at all store locations,” according to the restructuring website.
