Joann Inc., a well-known fabric and crafts retailer based in Hudson, Ohio, has revealed that it will be closing all of its locations as part of its business wind-down strategy. This decision follows a Chapter 11 bankruptcy filing in January, marking the second time the company has sought bankruptcy protection within a single year.

Reason for Closure

The retailer has attributed its difficulties to declining consumer demand and ongoing inventory shortages. Although the company initially expressed confidence to keep its stores operational following the January filing, the recent announcement indicates a significant shift in strategy.

Details on Store Closures

Joann stated that specific dates for the store closures and updates regarding their online platform will be shared soon. The company anticipates that it will take several weeks to complete its final sales process.

Store Closing History

Earlier in February, Joann announced plans to shut down over half of its nationwide stores—approximately 500 locations. Subsequently, during an auction, the financial services firm GA Group and Joann’s term lenders secured a bid to acquire most of the retailer’s assets, prompting the decision to begin a complete liquidation of store inventory.

A Brief Look Back

This recent bankruptcy filing follows Joann’s earlier Chapter 11 process in March 2024, after which it transitioned to a private company. Despite efforts for operational recovery, the company faced persistent challenges, leading to this latest filing.

Statements from Joann Leadership

In an official statement, Joann emphasized, “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.” They also expressed commitment to collaborating with the chosen bidder to ensure a structured and less impactful operational wind-down.

Next Steps for Customers

While the company enters this final phase, it has confirmed that both physical stores and its online platform, Joann.com, will continue to operate during the going-out-of-business sales. Customers are encouraged to take advantage of discounts available during this liquidation phase.