A national fabric and craft retailer is set to be latest chain to go out of business in Galesburg.
The JOANN Fabrics at 1920 N. Henderson St. in Galesburg is one of around 533 stores in the chain of 800 U.S. locations that will close, according to bankruptcy court documents.
The news comes after the company filed for bankruptcy a second time in less than a year in January after initially filing and then going private in March 2024.
An employee at the Galesburg store told WGIL on Wednesday they were unable to comment on the closing, referring all inquires to the corporate office. They added, “We’re heartbroken.”
Amanda Hayes, director of corporate communications and engagement for JOANN, tells WGIL the move was being done to “right-size its store footprint.”
The statement reads: “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. 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.”
The company website says, “JOANN stores are open, joann.com is shipping orders, and Team Members are receiving pay and benefits as we evaluate our best path forward.”
While the chain did not release an official list to the public, it did submit locations slated to close to the court as part of the Chapter 11 bankruptcy process. The Galesburg store was listed among the initial store closings in Case 5-10068-CTG Doc 385-1, filed Wednesday in the United States Bankruptcy Court for the District of Delaware.
It marks the third national retailer within the last three months to announce it was pulling out of Galesburg. In December, both Big Lots and Pet Supplies Plus announced they would be closing their Galesburg locations. Big Lots remains open in Galesburg, while Pet Supplies Plus closed in January.
