Joann Fabrics, a popular retailer known for its fabric and craft supplies, has announced it will permanently close its stores. The decision comes after the company struggled with financial difficulties and filed for Chapter 11 bankruptcy protection for the second time in a year.
The retailer, based in Hudson, Ohio, had previously planned to shut down around 500 locations. However, after facing ongoing challenges like low customer demand and inventory shortages, Joann has decided to close all its stores.
Joann Sold to GA Group and Creditors
On Saturday, Joann was sold to GA Group, a company known for buying and liquidating struggling businesses, along with a group of creditors. The sale still needs final approval from the U.S. Bankruptcy Court for the District of Delaware, which is expected to happen on Wednesday.
Following the sale, Joann released a statement saying that its leadership, board members, and legal team had explored all possible options to save the company. However, they could not find a better solution. They also mentioned that they would work closely with the new owners to ensure a smooth closing process and minimize the impact on employees, suppliers, and customers.
Massive Discounts as Joann Closes Stores
Joann started experiencing financial difficulties last spring, which led to an initial round of store closures. At first, only six stores shut down, but later, the number increased to 500. Now, with the latest announcement, all locations will be closing.
To clear out inventory before shutting down completely, Joann is offering huge discounts. Customers can find sales of up to 90% off at many locations.
According to Joann’s website, both the physical stores and the online shop, Joann.com, will remain open for a while as they conduct final sales. The company has not provided exact closure dates yet but promises to update customers as soon as possible. The entire closing process is expected to take several weeks.
Joann’s Bankruptcy History
Joann first filed for Chapter 11 bankruptcy in March 2024 and later became a private company. However, due to continued financial struggles, it filed for bankruptcy again in January 2025, leading to its decision to close all stores permanently.
Customers looking for final sales and updates on store closures can check Joann’s website or visit their nearest location before everything is gone.
