27-02-2025
Crafts retailer Joann going out of business; 19,000 jobs lost
Bankrupt arts and crafts retailer Joann will close all of its stores, after its restructuring plans faltered and a liquidator agreed to buy its assets.
Why it matters: Joann had about 800 stores and 19,000 employees when it filed for Chapter 11 bankruptcy protection in January, including 15,600 part-time workers.
Between the lines: The company had plans to shutter about 500 of its stores earlier this month, but those collapsed in recent days after liquidator GA Group won a bid to acquire substantially all of its assets.
A final sale hearing to approve the liquidation sale is set for Wednesday, Feb. 26 in U.S. Bankruptcy Court for the District of Delaware.
Flashback: Founded in 1943 as the Cleveland Fabric Shop in Ohio, the retailer expanded to 18 locations by 1963, when it renamed itself Jo-Ann Fabrics.
The moniker was a mashup of the names of the daughters of each of its founding families: Joan and Jacqueline Ann.
The company expanded rapidly, going public in 1969 and opening its 500th location in 1980, according to a court filing.
By 1998, it was the largest fabric and crafts retailer in the U.S.
When the pandemic struck, Joann's business boomed as DIY projects took off.
The company's sales rose 23.5% in the 2021 fiscal year.
But Joann soon faced mounting debt and increased competition that led the company into its first Chapter 11 bankruptcy in March 2024.
That case ended a month later, but the company filed for bankruptcy protection again in January 2025 in what is informally known to restructuring advisers as Chapter 22 — a second bankruptcy filing.
Store closings 2025
The big picture: Store closings are growing in 2025 with the loss of one of the nation's largest craft retailers.
Approximately 15,000 store closures are expected this year, more than double the 7,325 that closed in 2024, according to Coresight Research.
Big Lots, Party City, Kohl's, Macy's and JCPenney are among the retailers currently holding liquidation sales.
Joann store closings, liquidation sales
State of play: In a customer FAQ posted on its restructuring website, the company said subject to court approval it expects to begin or continue "going-out-of-business sales at all locations immediately."
The company says its website and mobile app will also remain open.
"Any dates for store closures or changes to the website and app will be communicated as soon as possible, and we expect it will take a number of weeks to complete our final sales."
Joann gift cards accepted through Feb. 28
Stores will be accepting gift cards through Friday, Feb. 28, the company said on its website.
Joann return policy
The bottom line: Stores will not be accepting returns, which is common for liquidation sales.
Personalized discounts and discount partnerships are also now paused, the company said.
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