Joann To Close All 800 Stores After Failing To Find Buyer

Fabric and crafts retailer Joann announced Monday that it will be closing all of its around 800 stores after being unable to find a buyer willing to keep them open. The company announced that it will start nationwide going-out-of-business sales, as required by the group that purchased its assets in an auction.

Joann to Shut Down All Stores Nationwide After Second Bankruptcy Filing

The retailer, which has served quilters, knitters, and craft lovers for over 80 years, is based in Hudson, Ohio. Joann filed for Chapter 11 bankruptcy in January for the second time due to low customer demand and inventory shortages, NBC News reported.

At that time, Joann had promised to keep all its stores open. However, earlier this month, the company announced that it would close 500 stores across the nation. Now, it will shut down all its stores nationwide.

"Following a comprehensive sale process and auction, GA Group, together with the Prepetition Term Loan Agent, was selected as having the winning bid to acquire substantially all of JOANN's assets," the company stated on the official website.

"Subject to court approval of the transaction, the winning bidders plan to wind-down ongoing operations and conduct going-out-of-business sales at all JOANN locations," it added.

Joann Addresses Customer Concerns Amid Nationwide Shutdown

In response to customer inquiries, the company answered several questions, including details about the going-out-of-business sales. Joann emphasized that its leadership, board, advisors, and legal team explored every possible avenue to find a solution that would allow the company to continue operating.

After a thorough sales process and auction, the winning bidders were selected to purchase most of Joann's assets. Joann's stores, website, and mobile app will remain open while the company conducts its going-out-of-business sales.

Customers can still buy their favorite products during this time. All Joann stores will be offering discounts on their products as part of the closing sales. However, personalized discounts, such as those for Girl Scouts, teachers, military members, and healthcare workers, will be paused.

Joann gift cards will still be valid for use until February 28. The company, however, will not accept returns during this period.

Rise, Fall, and Bankruptcy: A Legacy Comes to an End

Joann, founded as the Cleveland Fabric Shop by German immigrants during World War II, became the largest fabric retailer in the United States. The company first went public in 2010 but was removed from the stock market within a year.

During the pandemic, Joann saw a brief comeback as more people began crafting at home. It went public again in 2021, but by 2023, sales had dropped significantly. In early 2024, Joann filed for bankruptcy.

When Joann filed for its second Chapter 11 bankruptcy in January, it employed approximately 19,000 workers, most of whom were part-time.