A fabric and crafts retailer’s State College area location is one of hundreds slated for closure as the company seeks a court-supervised bankruptcy sale.
Joann has asked a bankruptcy court to authorize the closing of about 500 of its more than 800 stores, including the location at 505 Benner Pike in College Township.
In a motion to approve store closing sales, the company said the locations were identified as “underperforming stores that are unlikely to be considered” by potential buyers.
The Benner Pike store is among 33 in Pennsylvania expected to close, including locations in Altoona, DuBois and Johnstown.
“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,” the company wrote in a statement to multiple media outlets. “A careful analysis of store performance and future strategic fit for the Company determined which stores should remain operating as usual at this time.”
Joann also asked the court to allow it to stop accepting gift cards, refunds and returns at closing stores 14 days after the motion is approved.
For now, Joann’s Benner Pike location remains open seven days a week.
The retailer initially filed for Chapter 11 bankruptcy protection in 2024, but emerged a month later without closing stores after becoming a private company and shedding about half of its $1 billion in debt.
It filed for bankruptcy again in January, citing its financial position and inventory issues, “to facilitate a sale process to maximize the value of its business,” according to a statement at the time.
Joann is the third Benner Pike plaza facing closure after its company filed for bankruptcy.
A store-closing sale is ongoing at Big Lots, 503 Benner Pike, after an announcement in December that all of the discount retailer’s locations would be closing. After the company was sold, its new owner identified some stores to remain open, but the Benner Pike location was not among them.
Nearby in the Benner Pike Shops, Party City also recently closed after initiating a store-closing sale in October. Party City filed for bankruptcy protection in December and announced that most of its locations would close.
