Bankruptcy is a legal process for individuals or businesses that are unable to repay their outstanding debts. Chapter 11 bankruptcy, often used by businesses, allows a company to reorganize its debts and operations while continuing to function. Joann Fabrics, a major retailer in the crafting and fabrics industry, has recently filed for Chapter 11 bankruptcy. - Joann Fabrics has filed for bankruptcy in federal bankruptcy court in Delaware. - The company plans to close around 500 of its 800 stores across the United States. - Closures are expected to occur in multiple states, including Michigan, Arkansas, and South Carolina. - The company intends to proceed with the initial phase of the closings as soon as practicable.