By Sara Beth Williams–
After escaping a first round of closures, a local fabric retailer has been named on the list of 500 store locations to shutter throughout the country following the beginning of a second round of bankruptcy proceedings.
Joann, an 82-year-old fabric and craft retailer, announced in mid-January it had filed for Chapter 11 bankruptcy for a second time within 12 months. Almost one month later, the company announced last Wednesday that 500 stores nationwide, on top of six initial store closures, would shutter nationwide.
In court documents, the retailer blamed higher costs from shipping overseas products, as well as waning consumer demand, according to CBS News. Going-out-of-business sales are expected to start on Saturday and could continue for several months, the company said. Gift cards are still being accepted for in-store purchases, but not online shopping.
Nearly 60 Joann locations are slated to close in California alone, including locations in Sacramento, Elk Grove, Folsom, and Citrus Heights. The full list of store closures can be found here.
Joann in Citrus Heights is located in the Sunrise Village shopping center at the corner of Sunrise Boulevard and Madison Avenue, which underwent a major remodel in 2021 and 2022. Following the remodel of the shopping center, Joann moved from one building to another and reopened in March 2022.
Since the shopping center’s revitalization, the plaza has seen multiple new tenants, including Club Studio Fitness, which opened in September 2024, and Amazon Fresh, which opened in November 2024. Previously, Joann occupied the building that is now Amazon Fresh.
Joann originally announced in March 2024 that it had filed for bankruptcy protection in Delaware, reporting at least $1 billion in debt. National news outlets reported the company secured $132 million in new financing, which was expected to reduce its total debt by about $500 million.
“Since becoming a private company in April [2024], the Board and management team have continued to execute on top- and bottom-line initiatives to manage costs and drive value,” Michael Prendergast, Interim Chief Executive Officer of Joann, said in the press release. “However, the last several years have presented significant and lasting challenges in the retail environment.” Prendergast also cited “constrained inventory levels” as influential in the decision to undergo a “court-supervised sale process.”
Joann is located at 5489 Sunrise Blvd. in Citrus Heights.
