Joann Inc., an 80-year-old fabric and crafts retailer, announces the closure of all its stores nationwide after filing for Chapter 11 bankruptcy protection for the second time in a year.
Key Takeaways
- Joann Inc. is closing all its stores nationwide after filing for Chapter 11 bankruptcy protection for the second time.
- The company initially planned to close 500 stores while keeping 300 open but failed to find a buyer.
- Going-out-of-business sales are being conducted at all remaining store locations and online.
- Customer gift cards are valid through February 28, 2025.
- Joann reported $615.7 million in debt, including over $133 million owed to suppliers.
Joann Inc. Faces Financial Collapse
Joann Inc., a staple in the American crafting community for over eight decades, is facing a dire situation as it announces the closure of all its stores nationwide. This decision comes after the company filed for Chapter 11 bankruptcy protection for the second time in a year, marking a significant downturn for the once-thriving retailer.
The company’s financial struggles have been mounting, with reported debts of $615.7 million, including over $133 million owed to suppliers. These figures paint a grim picture of Joann’s fiscal health, illustrating the severe challenges faced by traditional brick-and-mortar retailers in an increasingly digital marketplace.
Joann founded as a Cleveland Fabric Shop during World War II and at one point, was the largest fabrics retailer in U.S is going-out-of-business. Sales to start nationwide at 800 stores! pic.twitter.com/wR7EWDa15L
— KDZA (@KDZAradio) February 25, 2025
Failed Attempts at Restructuring
Initially, Joann had hoped to salvage a portion of its retail presence. The company planned to close 500 stores while keeping 300 operational, a strategy aimed at right-sizing the business and ensuring its longevity. However, this plan fell through when Joann failed to secure a buyer willing to keep the remaining stores open.
“Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann,” a company spokesperson stated, highlighting the difficult decisions faced by the retailer. The failure to find a buyer has left Joann with no choice but to initiate a complete shutdown of its retail operations. This decision impacts over 800 U.S. retail locations and affects approximately 19,000 employees across the country, excluding Hawaii.
Liquidation and Customer Impact
As part of the bankruptcy proceedings, Joann has commenced going-out-of-business sales at all remaining store locations and online. This liquidation effort aims to maximize returns for creditors while offering customers final opportunities to purchase crafting supplies at discounted rates. “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 stated, acknowledging the impact of this closure on its loyal customer base.
Customers holding Joann gift cards are advised to use them by February 28, 2025. This deadline ensures that loyal patrons have a chance to redeem their credits before the final store closures. The company has stated that store closure dates will be announced on Joann’s website and app, allowing customers to plan their final visits accordingly.
Broader Implications for Retail
Joann’s collapse is not an isolated incident but rather a symptom of larger trends affecting the retail sector. Like many large brick-and-mortar stores, Joann has struggled to compete with online retailers, which offer convenience and often lower prices. The company’s inability to adapt to changing consumer habits and overcome supply chain issues has contributed to its downfall.
This closure serves as a stark reminder of the challenges facing traditional retailers in the digital age. As more consumers shift to online shopping, businesses that fail to innovate and adapt risk following in Joann’s footsteps. The loss of such a long-standing American retailer marks the end of an era for crafting enthusiasts and highlights the ongoing transformation of the retail landscape.
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Joann is closing all of its remaining stores and going out of business
Crafts retailer Joann closing down all U.S. stores, one month after filing Chapter 11 bankruptcy
