A Joann store at 423 Westlake Center in Daly City is among a dozen Bay Area locations expected to close.

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Bankrupt fabrics and craft retailer Joann Inc. plans to close a dozen Bay Area stores as part of around 500 closures around the country, according to a court filing on Wednesday.

The Ohio-based company filed for bankruptcy in January for the second time in 10 months and is seeking a buyer. Like many retailers, Joann suffered a consumer spending drop-off amid high inflation, in contrast to the pandemic spending boom a few years earlier. It reported $615 million in debt.

Interim CEO Michael Prendergast said in a January statement that “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” of bankruptcy.

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The Bay Area closures include Concord, Corte Madera, Cupertino, Daly City, Dublin, El Cerrito, Redwood City, Rohnert Park, Morgan Hill, San Leandro, San Mateo and Santa Rosa. Around 60 stores are closing across California.

Founded in 1943 by German immigrants, Joann grew to 865 stores in 49 states by 2020. It is now seeking court approval in Delaware for the store closures.

The company had not yet filed layoff notices with California officials related to the store closures. In January, Joann said 209 workers could be laid off at its Visalia (Tulare County) distribution center on March 15 if a buyer for the company isn’t found, according to a notice with the state Employment Development Department.

Reach Roland Li: [email protected]; X: @rolandlisf

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Feb 12, 2025