Joann To Shutter All 800 Fabric Stores After Failing To Find A Buyer

Joann, the well-known fabric and crafts retailer, has announced that it will shut down all of its approximately 800 stores nationwide after failing to secure a buyer willing to keep the company operational. The decision comes as part of an ongoing restructuring process following the company’s second Chapter 11 bankruptcy filing earlier this year.

In a statement, Joann revealed that it would begin nationwide going-out-of-business sales as part of the terms set by the winning bidder at a recent auction for its assets. The financial services firm GA Group, alongside Joann’s term lenders, has been selected to acquire nearly all of Joann’s assets and will oversee the wind-down of operations.

“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 statement read. “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. We deeply appreciate our dedicated Team Members, our customers, and communities across the nation for their unwavering support for more than 80 years.”

Joann Fabrics, #Bankruptcy Liquidation, all remaining 800+ stores plus distribution centers will close, #USA #Layoff #Layoffs

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Joann Fabrics has decided not to keep any stores open.
The company announced that it will be closing all stores across the country, including remaining… pic.twitter.com/iSlbYgfJrM

— Joseph Angelo (@Beachdudeca) February 24, 2025

Joann- Largest Fabric Retailer

Founded during World War II as the Cleveland Fabric Shop by German immigrants, Joann grew into the largest fabric retailer in the United States. The company initially went public in 2010 but was quickly de-listed. A brief resurgence during the COVID-19 pandemic, fueled by a surge in stay-at-home crafting, led to another public offering in 2021. However, Joann’s financial struggles continued, and by 2023, its sales had plummeted, culminating in its bankruptcy proceedings in early 2024.

End of an era! #Joann to shutter all 800 fabric stores after failing to find a buyer to save its locations. My mom and my mother-in-law loved going there! I enjoyed the store as well while looking for frames, art supplies and video background materials (my current one is from… https://t.co/WyVSfXPrYu pic.twitter.com/K96K1P4ZeW

— Sarbjeet Johal (@sarbjeetjohal) February 24, 2025

At the time of its most recent bankruptcy filing, Joann employed approximately 19,000 workers, most of them part-time. Initially, the company planned to close 500 stores, accounting for more than half of its locations, but it has since decided to shutter all remaining stores as part of the liquidation process.

As Joann prepares to wind down, its website, Joann.com, and its mobile app will continue to operate temporarily while going-out-of-business sales take place. Customers can expect steep discounts as the company liquidates its remaining inventory. While the closure marks the end of an era for a brand that has been a staple in the crafting community for decades, it also leaves thousands of employees and loyal customers grappling with the loss of a major player in the fabric and crafts retail sector.

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