JOANN to close more than 500 stores, including Capital Region locations

(NEXSTAR) — Less than a month after filing for Chapter 11 bankruptcy protection for the second time in a year, craft retailer JOANN is preparing to close hundreds of stores.

In a recent court filing, JOANN listed roughly 530 "underperforming" stores across more than 40 states that it would like to "immediately" begin closing. When the company filed for bankruptcy protection in January, it originally planned to keep all of its roughly 800 stores open throughout the 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 spokesperson for JOANN told Nexstar when reached for comment. "A careful analysis of store performance and future strategic fit for the Company determined which stores should remain operating as usual at this time. Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for JOANN."

Even more stores could close as the bankruptcy process continues, the company warned. Below is the list of stores JOANN has identified for potential immediate closure:

It's unclear when exactly these stores could close. A hearing is scheduled for Friday in the case.

JOANN previously filed for bankruptcy last March, blaming rising interest rates and dropping sales following the COVID pandemic, Nexstar's WJET reported. It was able to exit bankruptcy a short time later after becoming a private company.

Meanwhile, Gordon Brothers has been identified as a possible bidder for the business. The company also recently took control of Big Lots, the discount retailer that filed for bankruptcy last year.