Joann, the financially troubled arts-and-crafts retailer, announced Wednesday that it was preparing to close 500 of its 800 remaining stores after its latest bankruptcy filing.

The announcement came one month after the eight-decade-old company filed for bankruptcy for the second time in less than a year, as consumers pull back on spending. If the District of Delaware Bankruptcy Court gives its approval, the company said in a statement that it would shut underperforming stores across the country, from New York to Alaska.

“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 said in an emailed statement.

Joann, whose outlets were once called Jo-Ann Fabrics, is based in Hudson, Ohio. The chain has long sold art supplies, such as yarn, sewing machines, fabrics and other seasonal products. The company currently has stores in 49 states.

In March 2024, Joann filed for bankruptcy to reduce debt, resulting in the publicly-traded company’s being taken into private ownership. That initial filing closed in August 2024.

The retailer continued its downward spiral after a short-lived boost during the pandemic. The company said on Wednesday that it faced “significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, have forced us to take this step.”

Going-out-of-business sales at stores could start as early as Saturday, according to a customer FAQ shared by the company.

The retail chain is also seeking court authorization to stop accepting gift cards both online and in stores within the next two weeks. Joann has already stopped selling gift cards and no longer accepts them on its website. Returns will stop being accepted two weeks after the court’s approval of Joann’s restructuring plan, the company said.

J. Edward Moreno contributed reporting.