Joann Fabrics and Crafts, a well-known retailer in the US, has announced it will close all of its locations following an auction of its remaining assets.
This decision comes after the company filed for Chapter 11 bankruptcy for the second time in less than a year.
Retail liquidator GA Group, alongside Joann's term lenders, secured the company in the auction held on Saturday. Following the acquisition, Joann will conduct going-out-of-business sales at all its stores before shutting down operations completely.
According to federal court records, the auction results are expected to be officially approved in a hearing on Wednesday at the US Bankruptcy Court for the District of Delaware.
The news follows Joann's previous announcement that it would close approximately 500 of its more than 800 stores in the US, which has now expanded to include all locations, PostBulletin said.
"We deeply appreciate our dedicated Team Members, our customers, and communities across the nation for their unwavering support for more than 80 years," Joann stated.
The company expressed its commitment to working with the new ownership group to ensure a smooth and orderly wind-down of operations, minimizing impacts on employees and stakeholders.
Scott Carpenter, CEO of GA Group's Retail Solutions team, shared with the Akron Beacon Journal that most of the closing stores will remain open until the end of May.
He emphasized the group's plan to roll out a "multimillion-dollar retention plan" to help the company's approximately 19,000 employees. This plan includes job fairs and offering workers time off to seek other employment.
Joann Fabrics will soon be no more.
— Cleveland Magazine (@ClevelandMag) February 24, 2025
After GA Group won a bid to acquire substantially all of Joann Inc.'s assets in bankruptcy court, the Hudson-based craft store announced it would wind down and close every location — pending bankruptcy court's approval this week.… pic.twitter.com/EPCtMCZGtx
GA Group Wins Joann Auction, Plans Store Closures and Liquidation Sales
The GA Group, which won the bidding for Joann, has a long-standing relationship with the fabric retailer. In the late 1990s, they helped Joann acquire its competitor, House of Fabrics, and expanded its store network from 2006 to 2016.
The GA Group competed against Gordon Brothers Retail Partners, another asset liquidator, to acquire Joann's remaining assets.
If the court approves the sale, GA Group plans to liquidate all of Joann's merchandise and shut down the stores.
According to USA Today, Joann began its going-out-of-business sales on Saturday, February 15, at the stores already scheduled to close. Now, the sales will extend to all locations.
The company has stated that the sales will last for several months and only include the inventory currently available at each store.
Although specific discounts have not been made public, some Joann locations reported base discounts ranging from 10% to 20%, with certain Christmas items marked down as much as 75%.
However, the retailer has stopped accepting gift cards, and discounts for groups like Girl Scouts, teachers, military personnel, and healthcare workers have been paused. Additionally, returns are not being accepted at the closing stores.
Joann's stores will remain open for the time being, but no specific timeline has been set for their closure.
Calls to several locations have been answered with a recording that assures customers that final closing dates are not yet established. The company has also stated that certain locations are already offering liquidation sales with unique deals.
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