Craft retailer Joann seeks court permission for closure of 500 stores amid bankruptcy

Feb 12 (Reuters) - Craft retailer Joann said on Wednesday it has sought the court's permission to close 500 stores across the United States as part of its ongoing bankruptcy process.

In January, Joann filed for Chapter 11 protection in Delaware as inventory shortages and increased competition forced the retailer into bankruptcy for the second time in less than a year.

"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 told Reuters in an emailed statement.

The retailer, founded in 1943 and known for selling sewing, arts and crafts, as well as home décor products, currently has 800 stores in 49 states, with 19,000 employees.

Joann had kept all its retail stores open during its previous bankruptcy.