NEW YORK — The iconic fabric and crafts retailer, Joann Inc., is closing its doors permanently, marking the end of an era for numerous craft enthusiasts who have frequented its stores for over 80 years. The decision comes in the wake of the company, based in Hudson, Ohio, filing for Chapter 11 bankruptcy protection for the second time within a year in January.
The bankruptcy filing stemmed from decreased consumer spending and challenges in inventory acquisition. Initially, the company promised that all its locations would remain operational despite the filing. However, plans shifted dramatically as Joann announced earlier this month that it would be shuttering 500 of its stores, which accounts for over half of its nationwide outlets.
On Sunday, Joann revealed that following a recent auction, financial services firm GA Group, alongside Joann’s term lenders, was chosen as the successful bidder to acquire nearly all of the company’s assets. As a result, Joann will begin closing down operations and is set to initiate going-out-of-business sales at each of its store locations.
A section on Joann’s website dedicated to its restructuring assures customers that stores, along with Joann.com and its mobile app, will continue operations as long as liquidation sales take place. Specific closure dates for stores and any adjustments to the website will be updated as soon as they are determined, with the entire sales process expected to conclude in several weeks.
This isn’t the first time Joann has faced such hurdles. The company initially entered Chapter 11 in March 2024 and reemerged as a private entity, only to encounter persistent operational difficulties that led to yet another bankruptcy filing in January.
Joann expressed in a statement on its website that during these trying times, the leadership, alongside its board, advisors, and legal teams, explored every option to find a more favorable outcome that would keep the company viable. They are committed to collaborating with the winning bidder to ensure an orderly winding down of operations, aiming to lessen the impact on all parties involved.
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