Joann Inc., the fabric and crafts retailer that has served as a go-to destination for quilters, knitters, and craft enthusiasts for over 80 years, is closing all of its stores and going out of business.
This announcement follows the company’s Chapter 11 bankruptcy filing in January, marking its second such filing within a year. The retailer cited weak consumer demand and inventory shortages as contributing factors. Despite this, Joann initially stated it would keep all stores open.
However, earlier this month, the company revealed plans to close 500 stores, more than half of its locations nationwide. On Sunday, Joann disclosed that after a recent auction, financial services firm GA Group, along with the company’s term lenders, emerged as the winning bidder to acquire most of Joann’s assets. These entities will now begin winding down operations and will initiate going-out-of-business sales at all store locations.
Joann Inc. stated on its website, in a section dedicated to its restructuring process, that its stores, website, and mobile app will continue to operate during the going-out-of-business sales.
Joann announced that it will provide specific dates for store closures or changes to its website soon, adding that the final sales process will take several weeks to complete.
The company had first filed for Chapter 11 bankruptcy in March 2024 and later emerged as a private entity. However, due to ongoing operational challenges, Joann filed for bankruptcy again in January.
In a statement, Joann explained that its leadership, board, advisors, and legal partners made every effort to secure a more favorable outcome to keep the company running. The retailer emphasized its commitment to working with the winning bidder for a smooth and orderly wind-down that minimizes the impact on stakeholders.
