Joann Inc. Announces Nationwide Store Closures After Bankruptcy Filing

2025-03-03

Joann Inc., the well-known fabric and crafts retailer, is set to close all of its remaining stores nationwide after filing for Chapter 11 bankruptcy protection for the second time within a year. The company, which has been in operation for over 80 years, announced the decision following an auction where financial services company GA Group, along with Joann’s term lenders, acquired its assets. The new ownership group plans to conduct going-out-of-business sales at all locations, with most stores expected to remain open until the end of May.

The closure announcement comes after Joann initially planned to shutter approximately 500 of its more than 800 stores. However, the inability to secure a buyer willing to keep the stores operational led to the decision to close all remaining locations. The company cited “significant and lasting challenges in the retail environment” and its constrained financial position as key factors in the decision.

GA Group, which has a long history with Joann, including assisting in the acquisition of former competitor House of Fabrics in the late 1990s, has outlined a multimillion-dollar retention plan for the retailer’s approximately 19,000 employees. This plan includes organizing job fairs and providing time off for employees to interview for other positions. Scott Carpenter, CEO of GA Group, emphasized the company’s commitment to closing stores “with empathy, professionalism, and efficiency.”

Going-out-of-business sales began at the initially announced closing locations on February 15 and are now being rolled out across all stores. Discounts on inventory range from 10-20%, with some holiday items marked down as much as 75%. However, the company has paused the acceptance of gift cards, discounts for Girl Scouts, teachers, military, and healthcare workers, and item returns at closing locations.

The formal approval of the auction results is expected during a hearing on Wednesday in the U.S. Bankruptcy Court for the District of Delaware. Joann’s leadership expressed gratitude to its employees, customers, and communities for their support over the decades, acknowledging the difficult decision to wind down operations. The closure marks the end of an era for the beloved fabric and crafts retailer, which has struggled to compete with online competitors in recent years.