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JOANN Is Closing All Stores and Going Out of Business
February 24, 2025
JOANN has decided to close all of its remaining stores. This news comes less than two weeks after the retailer revealed plans to shut down 500 of its 800 locations on Feb. 12, 2025.
Despite efforts to restructure, including seeking a liquidator to purchase its assets, the beloved fabric and craft retailer could not be saved. This decision comes shortly after JOANN filed for Chapter 11 bankruptcy protection for the second time in a year.
In early February, Axios shared a statement from the retailer regarding the initial closures. It reads, “This was a very difficult decision to make, given the major impact we know it will have on our Team Members, our customers, and all of the communities we serve. A careful analysis of store performance and the company’s future strategic fit determined which stores would remain open at this time.”
However, the company has since confirmed that all JOANN locations will now close. According to the FAQ section of its website, store closure timelines and additional details will be communicated as soon as possible. The full shutdown is expected to take several weeks, with final sales underway. As is standard with liquidation sales, all purchases will be final, and returns will no longer be accepted.
The retailer’s restructuring website currently states, “Following a comprehensive sale process and auction, GA Group together with the Prepetition Term Loan Agent, was selected as having the winning bid to acquire substantially all of JOANN’s assets. Subject to court approval of the transaction, the winning bidders plan to wind-down ongoing operations and conduct going-out-of-business sales at all JOANN locations.”
GA Group, a retail liquidator, has been working with JOANN for decades, according to USA Today, such as by helping the retailer increase its store footprints between 2006 and 2016. Scott Carpenter, CEO of GA Group’s retail solutions and wholesale & industrial solutions teams, explained that most of the closing stores would stay open through the end of May.
Carpenter also discussed GA Group’s “multimillion-dollar retention plan” for the craft store’s 19,000 employees who will be laid off due to the store closures. This includes “organizing job fairs and granting workers time off so they can interview for other jobs.”
JOANN Thanks Customers for 80 Years of Support
For over 80 years, JOANN has been a leading retailer of fabrics and crafts, and it is deeply thankful for the generations of customers who have supported it.
Originally named the Cleveland Fabric Shop, the company later rebranded as JoAnn Fabrics, inspired by the founders’ daughters’ names. Its current name, JOANN, reflects its expanded product offerings beyond fabrics.
A company spokesperson said in a statement, per USA Today, “JOANN leadership, our Board, advisors, and legal partners made every possible effort to pursue a more favorable outcome that would keep the company in business. We are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on all our stakeholders.”
The statement continued, “We deeply appreciate our dedicated Team Members, our customers, and communities across the nation for their unwavering support for more than 80 years.”
A final sale hearing to approve the liquidation is scheduled for Wednesday, Feb. 26, in the U.S. Bankruptcy Court for the District of Delaware. JOANN stores will continue accepting gift cards through Feb. 28, but returns will no longer be allowed.
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