Joann Inc., the renowned crafting and fabrics retailer, has announced the closure of all its stores nationwide, marking the end of operations for all roughly 800 locations. This significant decision follows Joann's second Chapter 11 bankruptcy filing within the year, indicating the company’s continued struggle against financial woes.
The news was shared on February 12, 2025, when Joann indicated its plans to commence going-out-of-business sales immediately, subject to court approval. A spokesperson for Joann reported, "JOANN leadership, our Board, advisors and legal partners made every possible effort to pursue a more favorable outcome..."
Initially, Joann had sought to keep stores open during its bankruptcy proceedings. Just weeks after announcing its restructuring plans, it became apparent the situation was more dire than expected, leading the company to inform stakeholders of imminent full closure. Reports have circulated indicating the acquisition of Joann by the GA Group—a firm specializing in asset liquidation—also contributed to this distinct change of strategy.
With this decision, the company confirmed the immediate operational shift will facilitate the orderly wind-down of their stores. The high number of store closures will significantly affect retail spots across the United States including popular areas such as Colorado and Kansas City. Notably, within Colorado alone, it includes 14 locations, such as those found in Boulder, Centennial, and Colorado Springs.
Locally, the Kansas City area will see five locations close down permanently. This includes the stores situated at 2201 NW Barry Road and 11401 Metcalf Ave. Each of these closures adds to the extensive list of impacted locations across the nation.
Joann's transition from active retail operations follows its filing for bankruptcy protection, which occurred shortly after its earlier attempt at restructuring following financial setbacks. The company's initial approach aimed at retaining its store locations for consumer access, but rapid changes eventually led them to reassess and take drastic action.
The impending closures highlight broader consequences extending beyond simple retail losses. Joann has long served as a central hub for crafting and community activities, often hosting classes and events, and its closure reverberates through the crafting ecosystem. According to Fast Company, "Despite the imminent closures, Joann has assured customers..." indicating the importance of their shared connection and legacy with the crafting community.
What's next for Joann? A formal court hearing is set for February 26, 2025, at the United States Bankruptcy Court for the District of Delaware, where details of the asset sale will be finalized. After finalization, significant markdowns and discounts will continue throughout this process, allowing customers to purchase the remaining inventory.
"We are committed to working constructively with the winning bidder to assure minimal impact on all our stakeholders," Joann's spokesperson reiterated, reflecting the company’s dedication to its existing customer base even as the business moves to shutter.
With roots dating back to 1943, Joann began its venture with a single storefront in Cleveland, Ohio. Over the decades, it evolved, cultivating a reputation indispensable to the fabric and crafting communities. The eventual rebranding to simply ‘Joann’ for its 75th anniversary marked its transformation from regional to national touchpoints of retail for customers nationwide.
This closure serves as yet another example of traditional brick-and-mortar retailers facing increasing pressure from online competition and changing consumer habits. Joann's decline encapsulates the shifting paradigm of retail, where even iconic establishments find it challenging to endure within the current economic climate.
For many crafters, the closure of Joann stores signifies more than just the loss of access to fabric and craft supplies; it indicates the loss of community hubs long cherished for their contributions to the crafting tradition.