Joann Fabrics to Close All Stores Following Second Bankruptcy Filing

Joann Inc., the renowned fabric and crafts retailer, has announced the closure of all its remaining 800 stores nationwide after filing for Chapter 11 bankruptcy for the second time in less than a year.

This decision marks the end of an era for a company that has been a staple in the crafting community for over eight decades.

The company's financial struggles have been attributed to weak consumer demand and inventory shortages. Despite previous efforts to restructure and reduce debt, Joann was unable to stabilize its operations.

In January 2025, Joann filed for bankruptcy protection, initially planning to close 500 of its 800 stores. However, after failing to find a buyer for the remaining locations, the company decided to liquidate all its assets.

GA Group, a private equity firm specializing in asset disposition, emerged as the winning bidder for Joann's assets. The firm will oversee the wind-down process, including going-out-of-business sales at all locations. Customers are advised to use their gift cards promptly, as they will soon become invalid.

Joann's online services will remain operational during the liquidation process. However, personalized discounts and returns are being discontinued.

Founded in 1943, Joann has been a cornerstone for crafters, providing materials and inspiration for countless projects. The closure of all its stores signifies a significant shift in the retail landscape, reflecting the challenges faced by traditional brick-and-mortar establishments in the evolving market.

The company has expressed gratitude to its employees and customers for their support over the years and is committed to ensuring a smooth transition during this period.