Joann Fabrics, the renowned fabric and crafts retailer with a history spanning over 80 years, has announced the closure of all its 800 U.S. stores, resulting in the loss of nearly 20,000 jobs. This decision follows the company’s second Chapter 11 bankruptcy filing within a year, citing declining consumer demand and inventory challenges.
Initially, Joann planned to shutter approximately 500 locations. However, after a recent auction, financial services company GA Group, in conjunction with Joann’s term lenders, acquired the company’s assets, leading to the decision to close all remaining stores. Going-out-of-business sales have commenced, with the company’s website and mobile app remaining operational during this period.
In a statement on its website, Joann leadership expressed their efforts to avoid this outcome: “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.”
The company, founded in 1943 by German immigrants in Ohio, has been a staple for craft enthusiasts across the nation. The closures reflect broader challenges faced by brick-and-mortar retailers in adapting to post-pandemic shifts in consumer behavior, rising operational costs, and increased competition from online platforms.
Customers are encouraged to utilize any remaining gift cards by February 28, as all sales during the liquidation process are final, with no returns accepted.
Joann’s closure adds to the growing list of retail chains, such as Kmart and Big Lots, that have recently faced significant downsizing or complete shutdowns due to similar financial difficulties.
As the company winds down operations, it aims to ensure an orderly process to minimize the impact on employees, customers, and other stakeholders.