Kenya, Feb. 25 -- Joann, the 82-year-old fabric and crafts retailer, will close all of its approximately 800 stores by May 2025, marking the end of an era for the crafting community.
The announcement comes after the company filed for Chapter 11 bankruptcy protection for the second time in less than a year, with its latest filing in January 2025 triggering a court-supervised sale process that has now shifted to full liquidation.
Initially, Joann planned to close around 500 of its 800 U.S. locations earlier this month as part of a restructuring effort to maximize the value of its business while seeking a buyer.
However, after an auction process, financial services firm GA Group, alongside Joann's lenders, emerged as the winning bidder, opting to acquire substantially all of the company's assets for liquidation rather than continued operation.
A final sale hearing is scheduled for Wednesday, February 26, in the U.S. Bankruptcy Court for the District of Delaware to approve the transaction.
Going-out-of-business sales are set to begin immediately at all remaining locations, subject to court approval, with some sales already underway at the 533 stores approved for closure earlier in February.
The company's website, Joann.com, will also host liquidation sales, though online returns are no longer accepted. Gift cards will be honoured in-store only through Friday, February 28, providing a narrow window for customers to redeem them. Store closure dates will be announced progressively via Joann's website and app.
"We made every possible effort to pursue a more favourable outcome that would keep the company in the business," a Joann spokesperson said in a statement. "We are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on all our stakeholders."
The spokesperson expressed gratitude to the company's dedicated employees, customers, and communities for their support over more than eight decades.
Joann's financial struggles stem from a combination of mounting debt, declining consumer spending on discretionary items, and increased competition from online retailers.
The company first filed for bankruptcy in March 2024, reporting long-term debt between $1 billion and $10 billion, and emerged as a private entity after restructuring.
Despite reducing its debt by approximately $500 million at the time, ongoing challenges-including inventory shortages and a "middle market squeeze" between local craft stores and retail giants like Amazon-proved insurmountable.
Founded in 1943 as Cleveland Fabric Shop in Ohio, Joann grew from a single storefront to a national chain with a peak of over 850 stores across 49 states.
Known for its extensive range of fabrics, yarns, sewing supplies, and crafting materials, the retailer rebranded from Jo-Ann Fabric and Craft Stores to "Joann" in 2018 for its 75th anniversary.
At its height, it employed around 19,000 workers, including 15,600 part-time staff, many of whom now face uncertainty as the company winds down.
The closure of Joann adds to a wave of retail shutdowns in 2025, with industry analysts predicting approximately 15,000 store closures this year-more than double the 7,325 recorded in 2024. Other chains like Big Lots, Party City, Kohl's, and Macy's are also holding liquidation sales, reflecting broader pressures on brick-and-mortar retail.
For Joann, the loss of inventory production and revenue in recent years sealed its fate, leaving competitors like Hobby Lobby and Michaels to fill the void in the crafting market.
As the final chapter unfolds, crafters nationwide are mourning the loss of a beloved resource, with many taking to social media to express dismay and stock up on supplies during the closing sales.
The full list of affected stores spans 49 states, with Hawaii being the lone exception from earlier closure plans. For now, Joann's legacy as a cornerstone of American crafting endures, even as its physical presence fades.
Published by HT Digital Content Services with permission from Bana Kenya.