Joann, a renowned fabric retailer, is set to cease operations and shutter all its retail outlets.
Joann Fabrics and Crafts, a beloved destination for crafters and hobbyists for over eight decades, has announced it's closing shop permanently. After filing for Chapter 11 bankruptcy protection twice in a year, the first time being in March 2024, the retailer has faced numerous financial roadblocks. These challenges include inventory shortages, sluggish consumer demand, and intense competition from powerhouses like Michaels and Hobby Lobby.
Initially, Joann vowed to keep all its stores open, but earlier this month, they announced plans to shutter 500 outlets, leaving fewer than 300 in operation. Unfortunately, following a recent auction, financial services company GA Group, in alliance with Joann’s term lenders, claimed victory as the winning bidder to take control of Joann’s assets. The company confirmed they would kick off winding down operations and conduct going-out-of-business sales at all stores.
While Joann’s website and mobile app will remain operational, the fate of individual stores and the website remains undecided. The retailer has pledged to share closure dates and updates on their site as soon as they become available, with the winddown process expected to take several weeks.
Joann previously attempted a turnaround in March 2024 by filing for bankruptcy protection but, despite emerging as a private company, continuing operational difficulties led to another bankruptcy filing in January. In a conciliatory statement, Joann leaders acknowledged their tireless efforts to salvage the company only to fall short of their goal. They remain determined to support an orderly winding-down process focused on minimizing the impact on all stakeholders.
Sources:
[1] [ENRICHMENT DATA]
[2] [ENRICHMENT DATA]
[3] [ENRICHMENT DATA]
Joann's financial struggles led to a restructuring process, resulting in the planned closure of half of their retail outlets. Despite Joann's filing for Chapter 11 bankruptcy protection twice, retail powerhouses like Michaels and Hobby Lobby presented intense competition. Joann's beloved Joann Fabrics and Crafts stores, a fixture for crafters for over eight decades, now face permanent closures.
