Joann to Close All Stores Amid Bankruptcy Proceedings
Joann, the well-known craft retailer, has announced plans to shut down all of its stores following its bankruptcy filing, abandoning an earlier strategy to keep some locations open.
The company will be sold to the highest bidder, GA Group, which has confirmed that going-out-of-business sales will soon begin across all outlets, Reuters reported.
Joann, which has been in operation for 82 years with approximately 800 stores nationwide, had initially sought a buyer to sustain its business. However, despite efforts to continue operations, the Ohio-based retailer stated that closure was unavoidable. The company will continue accepting gift cards until February 28 and has pledged to minimize disruptions for employees, customers, and vendors during the shutdown process.
The retailer first filed for bankruptcy in March 2024 and re-emerged six weeks later after restructuring its debt. However, ongoing financial struggles, including supply chain disruptions and declining sales, forced Joann to file for bankruptcy again in January 2025.
With 19,000 employees and $538.3 million in inventory across 49 states, Joann cited rising debt – totalling $615.7 million – along with unpredictable product deliveries as key challenges. The company struggled to maintain its position as a go-to destination for craft and hobby supplies, facing difficulties in securing essential items such as yarn and sewing materials.
The decline of brick-and-mortar hobby stores has been exacerbated by growing competition from eCommerce giants. Recent retail data indicates a shift in consumer spending toward larger online platforms, making it increasingly difficult for speciality retailers like Joann to compete.
