Bankrupt Craft Store Joann To Shutter All 800-Plus Locations

Creatives and crafters across the U.S. are losing an outlet known for its wide array of yarn, fabric and sewing supplies.

Joann, the Ohio-based retailer with more than 800 locations nationwide, has announced plans to close all of its remaining stores. The news came as the 82-year-old company wades through its second set of bankruptcy proceedings in less than a year.

A Joann Store In North Canton, Ohio

The chain’s assets were auctioned off on Friday, The New York Times reported. Financial services company GA Group was the highest bidder.

A Joann spokesperson said the buyer plans to start winding down the company's operations and commence going-out-of-business sales at all store locations.

“Joann leadership, our Board, advisors and legal partners made every possible effort to pursue a more favorable outcome that would keep the company in business,” the company 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.”

Joann first filed for bankruptcy in March 2024 to reduce its debt. The company, which was then publicly traded, used it as an opportunity to transition to a private ownership structure.

But the retailer’s situation continued to spiral, according to a frequently asked questions document for customers released earlier this month after Joann announced plans to close 500 stores.

“We continue to experience significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, have forced us to take this step,” the company said.

Joann isn't the only retailer that has gone under amid bankruptcy proceedings in recent months.

Party City said it would close all of its 700-plus stores in December. The company managed to auction off 250 leases to other retailers, including Dollar Tree and Five Below earlier this month, but more than half of its locations garnered no interest despite the 4.1% retail vacancy rate nationwide.

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Related Topics: GA Group , Joann , Party City
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