Joann, a large dealer of fabrics and crafts, said in a bankruptcy application on Wednesday that it intends to close 500 seats and start going out-of-business sales.

The dealer currently has 800 seats. When it was originally submitted for bankruptcy in 2024, it said it did not intend to close any places. At that time, the company said it would also preserve the work with its 18,000 employees through bankruptcy.

In March 2024, Joann announced that it would apply for Chapter 11 and receive approximately $ 132 million in new financing. The dealer hoped to reduce his debt by $ 505 million during bankruptcy.

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The company then applied for bankruptcy again in January, this time and said it would apply for a buyer for its assets.

In the middle of the negotiations, the company said that it identified 500 underperforming places that buyers were not interested in.

In his updated bankruptcy archiving, Joann has asked a judge to let it stop accepting gift cards and return after 14 days. It also seeks permission to start going out of business sales immediately.

The company started operations in the Cleveland area in 1943 and currently operates in 49 states.