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Joann is going out of business, with the more than 80-year-old fabric and crafts retailer set to close all of its stores nationwide after filing for Chapter 11 bankruptcy protection for a second time. Struggling with weak sales, Joann said earlier this month it would close 500 of its stores, while keeping roughly 300 stores open. After failing to find a buyer that would keep its stores open, the fabrics outlet said in a statement posted on its restructuring website that all Joann locations will close.A Joann spokesperson said in a statement that it “made every possible effort to pursue a more favorable outcome that would keep the company in business.” The retailer previously sought Chapter 11 protection in March of 2024. After briefly emerging from court supervision, it again declared bankruptcy in January.Financial services company GA Group, along with Joann’s lenders, have acquired the retailer’s assets. The new owners are conducting going-out-of-business sales at all remaining store locations starting immediately, with sales also being held on Joann’s website. Some sales will begin immediately, and store closure dates will be announced over the company’s website and app, according to a FAQ posted by the company.
JoAnn Fabrics to close 500 stores nationwide
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Customer gift cards are valid through Feb. 28, Joann noted. Fabrics and yarns, sewing supplies and machines, and home decor are already marked down across Joann’s website.
“We deeply appreciate our dedicated team members, our customers and communities across the nation for their unwavering support for more than 80 years,” the company said. Like many other large brick-and-mortar retailers with a sizable retail footprint, Joann has long struggled to compete with online competitors.
Megan Cerullo
Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.
