Fabric and craft retailer JOANN plans to close its Fort Walton Beach location at 224B Eglin Parkway NE as part of a larger restructuring that will shutter approximately 500 stores nationwide, according to new documents.

• The company filed a motion on February 12 seeking court authority to begin the store closures, following its January 15 Chapter 11 bankruptcy filing in the U.S. Bankruptcy Court for the District of Delaware.

The retailer says right-sizing its store footprint is crucial for ensuring the company’s future. The Fort Walton Beach location is among hundreds listed in court documents for closure, though no specific timeline has been announced.

“The last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step,” said Michael Prendergast, Interim Chief Executive Officer of JOANN, in a statement.

During the restructuring process, the company says stores and JOANN.com will remain open, with employees continuing to receive pay and benefits. Gordon Brothers Retail Partners, LLC is serving as the “stalking horse” bidder in the court-supervised sale process.

JOANN has operated for more than 80 years, growing from a single Cleveland storefront into a national chain with over 800 stores across 49 states. The company says it remains committed to serving its customer base of sewists, quilters, crocheters and crafters throughout the restructuring.