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2mo ago

Joann Fabrics to Close All 800 Stores After Bankruptcy Auction

The 82-year-old crafting retailer will liquidate its assets following its second bankruptcy filing in less than a year.

Joann Fabrics store basket
A customer shops in a JOANN Fabric and Crafts store slated to close on February 13, 2025 in Miami, Florida.
The word 'Bankruptcy' is seen painted on the side of a vacant building by street artists as a statement on the financial affairs of the city on Grand River Avenue in Detroit, Michigan July 26, 2013. REUTERS/Rebecca Cook/File Photo
Rolls of yarn fill a shelf in a JOANN Fabric and Crafts store slated to close on February 13, 2025 in Miami, Florida.

Overview

  • Joann Fabrics announced it will close all 800 U.S. locations after financial services firm GA Group and lenders acquired its assets in a bankruptcy auction.
  • The decision comes after the company filed for Chapter 11 bankruptcy for the second time in January 2025, citing weak sales, inventory challenges, and high operating costs.
  • Going-out-of-business sales have started at all locations, with stores expected to remain open for several weeks to complete liquidation.
  • Joann's website and mobile app will remain operational during the liquidation process, though gift cards will only be accepted until February 28, and returns are no longer allowed.
  • The closures mark the end of an 82-year legacy for the Ohio-based retailer, which employed approximately 19,000 workers across 49 states.