Shortly after filing for bankruptcy for the second time, Joann Fabrics is officially closing its doors for good.
The beloved fabric and crafts retailer, a staple for DIY enthusiasts for 82 years, announced it will shutter all its stores. The decision follows Joann’s Chapter 11 bankruptcy filing in January, citing a lack of consumer demand and inventory shortages. At the time, the company vowed to keep all stores open.
However, earlier this month, Joann revealed plans to close over 500 stores, which is more than half its nationwide footprint. On Sunday, the corporation confirmed that after a recent auction, financial services firm GA Group, alongside Joann’s term lenders, won the bid to “acquire substantially all of Joann’s assets” and would oversee the retailer’s wind-down and going-out-of-business sales.
Joann assured customers that stores, Joann.com, and the mobile app would remain operational during the liquidation process. The company stated that closure dates and website changes would be posted “as soon as possible” and estimated that “final sales” would take “a number of weeks to complete.”
Joann previously filed for Chapter 11 in March 2024 and re-emerged as a private company. But mounting operational challenges led to a second bankruptcy in January.
“Joann leadership, our board, advisors, and legal partners made every possible effort to pursue a more favorable outcome that would keep the company in business,” the company said. “We are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on all our stakeholders.”
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