Joann, a well-known fabric and craft retailer with an 82-year history, has announced it will be closing all its stores following its second bankruptcy filing within a year.
The decision comes after a recent auction where financial services company GA Group, along with Joann’s lenders, acquired most of the company’s assets. Going-out-of-business sales have already begun at store locations nationwide.
The Hudson, Ohio-based retailer first filed for Chapter 11 bankruptcy in March 2024 but emerged as a private company shortly after. However, ongoing financial struggles—including declining consumer demand, inventory shortages, and mounting debt—led to another bankruptcy filing in January 2025. At the time, Joann had over $615 million in debt and only $8.4 million in cash.
Initially, Joann had planned to close around 500 stores, but the latest announcement confirms a full closure of its retail operations. The sale and shutdown are still awaiting final approval from the US Bankruptcy Court in Delaware, with a hearing scheduled for Wednesday.
Joann’s closure will impact approximately 19,000 employees across its 800 stores. The retailer has not yet provided exact dates for store shutdowns or changes to its website and mobile app. However, it has stated that stores, online sales, and the app will remain operational during the liquidation process.
Customers can continue to shop during the clearance sales, but Joann has specified that it will only accept gift cards through February 28, and all sales are final with no returns allowed.
While Joann’s physical stores will close, there is speculation that its brand could continue in some form. Experts suggest that an e-commerce company might purchase its intellectual property and operate Joann as an online-only retailer, similar to what happened with Bed Bath & Beyond. However, no official plans have been announced.
Joann’s struggles reflect broader challenges in the retail industry, particularly for specialty stores. The company initially benefited from increased demand during the COVID-19 pandemic, as more consumers took up crafting hobbies. However, as shopping habits shifted post-pandemic and online competition grew, Joann faced declining sales.
The retailer now joins other chains that have recently announced closures, including Party City and Big Lots. According to retail analytics firm Coresight Research, store closures in 2024 reached their highest level since 2020, with projections suggesting that up to 15,000 stores may shut down this year.
With input from CNN and the Washington Post.
