News Summary
Joann Fabrics has announced the closure of all 800 stores across the U.S. following a bankruptcy auction. The beloved crafting retailer, which has been in business for 80 years, struggled with financial issues and declining sales, ultimately leading to this heartbreaking decision. GA Group won the auction bid for the company’s assets and plans going-out-of-business sales, pending court approval. The timeline for store closures remains uncertain as loyal customers prepare for the end of an era in crafting.
Joann Fabrics Closes All Stores After Bankruptcy Auction
The beloved crafts and fabrics retailer, Joann Fabrics, is making the tough decision to close all of its 800 stores across the United States. This marks a heartbreaking end for a business that has been a staple in the crafting community for an impressive 80 years. The company, which is based in Hudson, Ohio, filed for Chapter 11 bankruptcy twice in under one year and has faced serious financial struggles.
The Auction and Aftermath
Recently, Joann went through an auction process on a Friday, where the financial services company GA Group came out on top, winning the bid to acquire “substantially all of JOANN’s assets.” This was a major turning point for the retailer, as it initially planned to close about 500 stores earlier in February as part of its bankruptcy efforts. However, following the auction results, the company decided to bring an end to operations entirely.
Plans for Wind-Down
Going forward, GA Group plans to conduct going-out-of-business sales at all Joann locations. However, this is subject to approval by the bankruptcy court. In a recent announcement, Joann’s leadership revealed that they worked tirelessly to find a way to keep the business afloat, but those efforts did not yield the desired results.
Facing Tough Times
Joann has attributed its troubles to a difficult retail environment that includes declining sales and issues with inventory. These challenging circumstances led to the drastic decision to close all of their stores. The company had originally filed for bankruptcy back in March 2024, initially aiming to reduce its debts and return to private ownership, but it continued to suffer from falling sales.
Goodbye to a Crafting Icon
As the news of the closure spreads, many loyal customers—especially avid crafters—are feeling a deep sense of loss. For many, Joann was not just a store but often the only nearby option for sourcing specialty crafting materials. It’s hard to imagine the crafting community without this important resource.
What’s Next?
The timeline for the complete shutdown of stores is still somewhat uncertain, but the going-out-of-business sales are already in motion, allowing customers to take advantage of deals on their favorite supplies. Joann has announced that it will continue to accept gift cards until February 28 and will not be accepting any returns.
The Legal Side of Things
A crucial court hearing to officially approve the auction results and the liquidation sale is set for February 26 in the U.S. Bankruptcy Court for the District of Delaware. This will be a significant step in finalizing the wind-down process.
A Fond Farewell
As Joann Fabrics wraps up nearly a century of operations, the leadership team expressed their heartfelt gratitude to team members, customers, and the communities that have supported them over the years. The crafting world will surely miss this cherished retailer, and many will feel the impact of its absence for years to come.
Deeper Dive: News & Info About This Topic
- Akron Beacon Journal
- Wikipedia: Joann Fabrics
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- Google Search: Joann Fabrics closing stores
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- Encyclopedia Britannica: Retail
- Fox 8 News
- Google News: Joann Fabrics bankruptcy
- Spectrum News 1
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