Bankrupt Joann Will Close 500 Fabric Stores In US. Here's When Going-Out-Of-Business Sales Begin

Nearly a year after filing for bankruptcy the first time, fabric and retailer store, Joann had filed Chapter 11 again and is shutting down around 500 stores nationwide.

The Ohio-based company currently operates 800 locations.

It cited rising costs and declining consumer demand as key reasons for its financial struggles, CBS News reported.

Initially planning to keep stores open, Joann changed course in January, launching Chapter 11 proceedings to expedite a sale.

"We hope that this process enables us to find a path that would allow Joann to continue operating as a going concern," Interim chief executive officer Michael Prendergast said.

It was not known how many employees were losing their jobs in the mass closures.

Joann reported between $1 and $10 billion in debt.

Liquidation sales of merchandise will start on Saturday and may last for months.

Customers who own gift cards are no longer eligible for online orders and can only make in-store purchases.

Affected locations span nearly every state, with major closures in Florida, Texas, Illinois, and California.

The company went private after its first bankruptcy hearing.

Joann is among a growing list of struggling retailers, including Quiksilver, Billabong, Big Lots, Party City True Value and Macy's, which recently announced mass closures.