Joann fabrics is going out of business and closing all stores after a turbulent bankruptcy process and sale

Fabric and craft retailer Joann Inc. is officially shutting down all of its stores following a turbulent bankruptcy process.

The company filed for Chapter 11 bankruptcy protection in January for the second time in less than a year, initially saying it would keep its stores open while restructuring its debt. However, just weeks after the filing, Joann reversed course and announced it would close 500 of its roughly 800 locations, as Fast Company reported.

The closure of those stores was just the beginning. As part of the ongoing bankruptcy proceedings, Joann held an auction on February 21 to sell off its assets. A limited liability company called GA Joann Retail Partnership, which is a subsidiary of “asset disposition” company GA Group, emerged as the winning bidder, and will now oversee the complete liquidation of Joann’s remaining operations.

The move is still subject to court approval.

What happens next for Joann?

A final sale hearing has been scheduled for February 26 in the United States Bankruptcy Court for the District of Delaware. This hearing will formally approve the asset sale, paving the way for the complete wind-down of Joann’s operations across the country.

Despite the imminent closures, Joann has assured customers that it will offer substantial discounts during its going-out-of-business sales. These sales will begin immediately at all locations, allowing customers to purchase the remaining inventory at discounted prices.

Joann’s website and mobile app will also remain operational, enabling online shoppers to make their final purchases before the company ceases all operations entirely.

The end of an era for the crafting community

The collapse of the national retail chain marks an end to what was once a dominant force in the fabric and crafting world. Joann had been a go-to retailer for crafters, quilters, and sewing enthusiasts for decades. Its decline underscores the ongoing struggles faced by traditional brick-and-mortar retailers amid rising competition from online stores and shifting consumer habits.

Joann’s closing is expected to have lasting effects on crafters, as the retailer’s stores were not only places to shop but also hubs for classes, events, and a sense of community.