In CHICAGO, Joann Inc., a well-known fabric and crafts retailer that has catered to quilters, knitters, and craft lovers for over 80 years, is closing down all of its stores.
The decision to shut down operations follows the retailer’s filing for Chapter 11 bankruptcy protection in January. This was the second time in a year that the company had to take such action, citing slow consumer demand and inventory issues. Initially, there were promises to keep all stores open despite the financial challenges.
Nevertheless, Joann recently announced its intention to close more than half of its stores, totaling 500 locations nationwide. Following an auction, a financial services company, GA Group, in collaboration with Joann’s term lenders, emerged as the winning bidder. They are set to acquire a significant portion of Joann’s assets and oversee the winding down of the company’s operations, including the initiation of going-out-of-business sales across all stores.
The company said in a question-and-answer section on its website devoted to its restructuring that the stores, Joann.com and the mobile app will remain open and operate as it conducts going-out-of- business sales.
The retailer said that the dates for store closures or changes to the website will be posted as soon as possible, and it said it expects it will take a “number of weeks to complete our final sales.”
Joann previously sought Chapter 11 in March 2024 and later emerged as a private company. But after operational challenges continued to pile up, Joann filed for bankruptcy again 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,” Joann said in a statement posted on its website. “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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