Joann Fabrics to Shutter All 800 Stores After Failed Sale Attempt

Joann Fabrics to Shutter All 800 Stores After Failed Sale Attempt

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Joann Announces Nationwide Shutdown Following Second Bankruptcy

Joann, a fabric and craft store chain, said Monday it will close all of its about 800 stores after being unable to sell them to a buyer who would keep them operating. The company will start going-out-of-business sales across the country as mandated by the group that bought its assets in a recent auction.

Joann Fabrics to Shutter All 800 Stores After Failed Sale Attempt
Image Credit:@PopCrave

The Ohio chain, which has been catering to quilters, knitters, and crafters for more than 80 years, sought Chapter 11 bankruptcy protection in January—its second attempt—following waning customer demand and a shortage of merchandise, NBC News reported.

Initially, Joann had indicated all stores would remain open. Then, the company announced plans this month to close 500 locations. Now, the retailer confirmed it will close all stores across the country.

Winner of Bid Moves to Sell Off Joann’s Assets

“After an extensive sale process and auction, GA Group, along with the Prepetition Term Loan Agent, was designated as the winning bidder to purchase substantially all of Joann’s assets,” the company wrote on its website.

“Subject to court approval of the sale, the successful bidders intend to wind down current operations and hold going-out-of-business sales at all Joann stores,” the statement went on.

What This Means for Customers

To alleviate customer concerns, Joann assured consumers that its stores, website, and mobile app will continue to operate while liquidation sales are in progress.

Consumers can continue to buy their favorite items, although personalized discounts—such as those for teachers, military personnel, healthcare professionals, and Girl Scouts—will be suspended.

Joann gift cards will be valid up to February 28, but the company will not accept returns during this time.

Joann’s Rise and Fall: The End of an Era

Started as the Cleveland Fabric Shop by German immigrants in World War II, Joann expanded to become the largest fabric retailer in America. It became public in 2010 but was delisted from the stock market within a year.

During the pandemic, Joann saw a temporary surge as more individuals picked up crafting. It went back to the stock market in 2021, but by 2023, sales had fallen through the floor.

When it filed for its second bankruptcy in early 2024, it had about 19,000 employees, the majority of whom were part-time. Now, as the business gets ready to shut its doors forever, it is the end of an 80-year tradition in the world of crafting.

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