Joann Inc. Announces Closure of All Stores Amid Bankruptcy Proceedings

Joann Inc., a well-known retailer specializing in fabric and crafts, has revealed its decision to cease operations and close all retail locations. This announcement follows the company's recent filing for Chapter 11 bankruptcy protection in January, marking its second bankruptcy filing within a year.

The Hudson, Ohio-based company has faced ongoing challenges, including diminished consumer interest and supply chain issues that have hindered inventory levels. Despite an earlier commitment to keep its stores operational, Joann has now stated that it will close over 500 locations, which represents more than half of its national presence.

As part of the restructuring process, Joann has confirmed that it will conduct going-out-of-business sales across all its stores. The financial services firm GA Group, in collaboration with Joann's term lenders, has emerged as the successful bidder to acquire a substantial portion of Joann's assets, thereby initiating the winding down of the company's operations.

The retailer also indicated that its website and mobile app would remain functional during this transition period, allowing customers to continue shopping until the final sales conclude. The company has committed to providing updates regarding specific closure dates and changes to their online platforms as the process unfolds. It anticipates that the final sales will take several weeks to complete.

Previously, Joann had filed for bankruptcy protection in March 2024 and emerged as a private entity. However, persistent operational difficulties led to this latest bankruptcy filing.

Joann stated on its website: "Our leadership team, along with advisors and legal partners, made extensive efforts to secure a more favorable outcome that would allow the business to continue operating. We are committed to working closely with the appointed winning bidder to ensure an orderly shutdown that minimizes the impact on stakeholders, including employees and customers."

The retailer's long history as a staple for crafting enthusiasts, spanning over eight decades, makes this closure particularly significant for its loyal customer base who have relied on Joann for their crafting needs.