Joann, the beloved craft retailer with an 82-year history, is closing all of its 800 U.S. stores after failing to secure a buyer willing to keep the business running. The company announced Sunday that it will sell its assets to a buyer group, including its lenders and GA Group, with going-out-of-business sales set to begin soon.
The Ohio-based company, which filed for bankruptcy in January—its second filing in under a year—cited supply chain disruptions and financial struggles as key reasons for its downfall. Joann previously eliminated $505 million in debt during a 2024 restructuring but remained burdened by $615.7 million in liabilities, including over $133 million owed to suppliers.
Despite efforts to stay afloat, unpredictable inventory deliveries and rising operational costs, including $26 million in monthly rent, made it impossible to continue. The retailer will honor customer gift cards until February 28 and aims to minimize disruptions for employees and vendors as it winds down operations.
The bankruptcy court will review the sale on Wednesday in Wilmington, Delaware, marking the final chapter for the iconic crafts retailer.
