Joann Fabrics, the beloved fabric and crafts retailer, is set to close all of its stores across the United States after filing for Chapter 11 bankruptcy for the second time this year. The Hudson, Ohio-based company announced these closures following the auction of its remaining assets, which were acquired by GA Group and the company’s term lenders. This decision affects all Joann locations, marking the end of over 80 years of operations, during which the retailer became a go-to source for crafting enthusiasts.
The announcement about the closures was confirmed during the weekend after the auction and will trigger going-out-of-business sales at each store location. The impending sales began on February 15, and customers can expect significant discounts on products, though specific discount details were not fully disclosed at the time of the announcement.
The closure includes locations across the nation, and particularly impacts Arizona, where significant store closures were previously confirmed. Among these are stores in cities like Gilbert, Mesa, and Tucson, joining numerous others already slated for closure. Joann had indicated it would initially close around 500 of its 850 stores but has now decided to shut down operations entirely.
“We deeply appreciate our dedicated team members, our customers and communities across the nation for their unwavering support for more than 80 years,” stated a Joann spokesperson, reflecting on the company’s long history and commitment to serving its clientele.
The announcement follows Joann's previous attempt to recover from financial instability. Having filed for Chapter 11 bankruptcy initially back in March of 2024, with the intention to secure around $132 million in new financing, the company failed to find sustainable operations and went back to bankruptcy courts earlier this year. Despite efforts to encourage sales and restructure, Joann was unable to maintain profitability amid rising competition from both online retailers and other large brick-and-mortar stores.
Financial services company GA Group, alongside Joann's term lenders, won the bidding during the auction to acquire Joann's assets. The restructuring plan was crafted to facilitate the realization of asset value but concluded with the determination to liquidate. A formal court hearing is scheduled for Wednesday, which will approve the auction results and formalize the company’s shutdown process.
“JOANN leadership, our Board, advisors and legal partners made every possible effort to pursue a more favorable outcome...,” the spokesperson highlighted, shedding light on the struggles faced by management to keep the company operational.
With the closure of these retail outlets, many analysts are speculating on the impact to local jobs, particularly those at the Hudson headquarters. Local attorney Marc B. Merklin commented on the likely situation saying, “It's unfortunate it's going to probably mean the local headquarters won't be here, and likely those jobs will be lost.”
Joann has been part of a larger trend of big box closures, joining the ranks of other retailers such as Big Lots and Macy’s, as widespread economic shifts continue to challenge traditional retail models. The surge of online shopping has forced many such retailers to reassess their physical footprint dramatically.
Customers will still be able to shop on Joann's website and mobile app as the liquidation sales progress. Initially, sales will feature discounts on various items, including crafting supplies, fabrics, and home decor. Joann has halted all gift card usage and has also paused discounts for groups such as Girl Scouts and teachers during this transition. Returns of items purchased prior to the closure were also not being accepted, marking significant changes for customers hoping to shop their way through the impending sales.
While this decision has left many customers saddened, as Joann fabrics has been synonymous with crafting and creativity for decades, the closure of all stores signals the definitive end of the line for this once-thriving retail entity.
It’s clear this closure not only marks the end of Joann’s era but will also significantly impact the communities and states where the stores once stood. These stores provided more than just materials for crafts; they were community hubs inspiring creativity. The impending closures create uncertainty about the future for many dedicated employees, as well as for customers who relied heavily on Joann for their craft needs.
With Joann’s substantial layoffs and eventual discontinuation of operations, the fabric of the crafting community will undoubtedly feel a serious disruption. The company seemed determined to navigate these tough waters but with the bankruptcy and ensuing auction, the reality set in—Joann, as we know it, is coming to an end.