News Summary
Joann Inc., the popular crafting store chain, has announced the closure of all 800 U.S. retail locations following its second Chapter 11 bankruptcy filing. This decision comes after the company struggled with significant debt and competition from online retailers. A buyer group has acquired the company’s assets, prompting upcoming liquidation sales. Despite the closures, customers can use gift cards until February 28, 2025, and continue purchasing online during the liquidation process. The closures signify a larger trend impacting traditional retailers as consumer shopping habits shift.
Joann Inc. to Close All Stores Nationwide Following Second Chapter 11 Bankruptcy Filing
The crafting world is buzzing today as Joann Inc., the beloved fabric and craft store chain, announced its decision to close all 800 of its U.S. retail locations. This bittersweet news comes on the heels of Joann’s second Chapter 11 bankruptcy filing which occurred back in January 2025, marking another challenging chapter for the company.
History of Restructuring
It may be a shock to some, but this isn’t Joann’s first rendezvous with bankruptcy protection. They previously filed in March 2024 but managed to keep their doors open during a restructuring effort. While many in the crafting community hoped for a different outcome this time around, Joann’s management exhausted every possible avenue to find a buyer willing to keep operations alive.
What Happens Next?
Following the bankruptcy proceedings, a buyer group that includes the GA Group along with Joann’s lenders has successfully acquired the company’s assets. This group has plans to kick off immediate going-out-of-business sales across all Joann locations. If you’re a crafter at heart, expect to see some exciting deals as the liquidation process unfolds.
Financial Struggles
In the aftermath of this announcement, it’s important to consider the financial landscape that led to these closures. Joann had amassed a staggering $615.7 million in debt, which includes over $133 million owed to suppliers. With an inventory worth approximately $538.3 million and 19,000 employees on the payroll, the company was struggling to make ends meet. They faced tight competition from online retailers, coupled with significant supply chain disruptions affecting essential crafting products.
Impact of Store Closures
The closures will not only impact shopping options but will also signify the end of community hubs where many gathered for classes and events centered around crafting. Mid-February marks the start of a phased closure plan to minimize disruption for employees, customers, and vendors as the company winds down its operations.
Customer Information
If you’re holding onto any Joann gift cards, there’s a glimmer of good news—you’ll be able to use them until February 28, 2025. Although the stores are closing, fans of Joann can still make online purchases through the company’s website during the liquidation process. So, if you need that specific fabric for a project, it’s not quite over just yet!
Looking Forward
As Joann Inc. takes these difficult steps, a hearing is scheduled for February 26, 2025, where a bankruptcy court will formally approve the asset sale. The atmosphere is filled with mixed emotions as loyal customers reflect on how much Joann has been part of their crafting journeys.
The Bigger Picture
This situation is a part of a larger trend impacting traditional brick-and-mortar retailers, especially in the wake of changing consumer shopping habits following the COVID-19 pandemic. As people find comfort in online shopping, even beloved names like Joann are struggling to keep up. A wave of adaptations and shifts are taking place across the retail landscape, leading to a reconsideration of what local shopping looks like in today’s world.
In the end, Joann’s closure is more than just a business decision; it represents a shift in how we engage with our local communities and partake in our favorite hobbies. For many, it’s a heartfelt goodbye to a store that was a treasure trove for inspiration and creativity.
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