Joann to Close All Stores Amid Financial Struggles

HUDSON, Ohio — Joann, a major national retailer of fabric and craft supplies, has announced plans to close all of its approximately 800 stores across 49 states. This decision follows the company’s second bankruptcy filing in less than a year amid ongoing financial struggles.

The more than 80-year-old chain, previously known as Jo-Ann Fabrics, faced a decline in market share due to increased competition from online marketplaces and brick-and-mortar rivals like Hobby Lobby and Michaels. Retail analyst Neil Saunders noted that Joann has been unable to recover sales lost to these competitors.

In a statement released Sunday, Joann confirmed it is being acquired by the GA Group and its prepetition term lender. The company stated, “In connection with this agreement, subject to Bankruptcy Court approval of the transaction, the winning bidders plan to begin winding down the Company’s operations and conduct going-out-of-business sales at all store locations.”

The liquidation sales are set to commence immediately and are expected to take several weeks to complete. Customers will still be able to use gift cards until February 28, but the company has paused personalized discounts and will not accept returns during this period.

Joann’s financial woes date back to an attempt last year to alleviate its ballooning debt through restructuring. At that time, the company assured customers that its stores would remain open. However, in January, interim CEO Michael Prendergast stated that selling the company was deemed the best option by executives.

Earlier this month, as part of efforts to find a buyer, Joann announced it would close 60% of its retail shops nationwide. With the latest developments, the company will now proceed with a full shutdown.