Nationwide 82-year-old chain to shutter final stores in weeks… but not before a huge closing down sale
Joann is closing for good after 82 years — and everything must go.
The once-popular craft retailer confirmed it will shutter all remaining stores in the coming weeks.
It will wrap up its nationwide going-out-of-business sales that offer shoppers up to 90 percent off.
Joann's demise has come fast. It filed for Chapter 11 bankruptcy in January in the hope of restructuring and keeping the business afloat.
But just a month later bosses said would Joann would close all its 800 stores. After shutting 255 in April, the rest will go this month.
Until 2018, it was known as Jo-Ann Stores but rebranded as 'Joann' to move beyond fabrics to embrace a wider range of crafts.
Fans of Joann were furious to learn the chain canceled gift cards on February 28.
Joann is the latest retailer to face challenges after experiencing a pandemic-era sales boom. With Americans now returning to work, the surge in home crafting has significantly declined.
Joann's closures come after a widespread 'retail apocalypse' last year saw major companies file for bankruptcy and brick-and-mortar stores close in their droves.
Up until mid-December, US retailers have shut 7,300 stores - up nearly 60 percent from 2023.
The most recent big retail bankruptcy was Container Store, which filed for Chapter 11 protection on December 22. There has been no news yet on its
The store - known for its home organizational goods, including closet organizers and storage bins - has been around for 46 years.
Despite receiving a boost from Marie Kondo's hit Netflix show 'Tidying Up' during the Covid-19 pandemic, the chain has been weighed down by mounting losses in recent years.
Joann specialized in fabrics and arts and crafts supplies, and its major competitors included Michaels and Hobby Lobby.
It first filed for Chapter 11 bankruptcy in March last year after pandemic-era sales growth faded, leaving the retailer with $1.2 billion in debt.
It emerged from bankruptcy the next month - with 815 stores across 49 states - after creditors agreed to cancel $505 million in debt in exchange for ownership of the company.
Unfortunately, it was not enough for the chain to make a financial comeback.
The retailer had $615.7 million in debt before its second filing and later sold all its assets to the GA Group and various lenders.
Now that Joann has bitten the dust, so will the jobs of nearly 20,000 employees.
Burlington is using Joann's unfortunate demise as an opportunity for store expansion.
The department store retailer confirmed it would begin transitioning 45 Joann locations into Burlington stores in May and June.
Some locations will be in California, Texas, and Joann's home state of Ohio.
Despite Joann's failure, Michaels is continuing its reign of being the North America's largest provider of arts and crafts and currently operates over 1,200 stores.
Hobby Lobby is thriving after opening several stores this year, one being in Arizona last week.
As of now, Michaels and Hobby Lobby have never filed for Chapter 11 bankruptcy protection.
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