Joann plans to shut down approximately 500 stores nationwide as part of its Chapter 11 process.

The fabric and craft retailer has filed a motion seeking court authority to begin the closures. It currently has more than 800 stores across 49 states.

The company said in a statement it has made a “careful analysis of store performance” to determine which stores should remain open.

“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.

“Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann,” the statement reads.

The company entered Chapter 11 last month and sought approval to sell all of its assets under Section 363 of the US Bankruptcy Code, pursuant to which Gordon Brothers Retail Partners would serve as the ‘stalking horse’ bidder.

However, lawyers said Wednesday in a court filing that the retailer has determined many of its locations will not attract a buyer.