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Joann announced the winning bidders at a bankruptcy auction plan to begin going-out-of-business sales at every store, the company said. At its height, the crafts chain had about 850 stores in every state but Hawaii.
Financial services company GA Group, in partnership with the prepetition term loan agent, acquired Joann's assets at the auction.
"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 spokesperson 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.
"We deeply appreciate our dedicated team members, our customers and communities across the nation for their unwavering support for more than 80 years."
A Joann store in Manchester, CT.
Joann was founded in 1943 by German immigrant families, according to The Plain Dealer newspaper in Cleveland. Originally named Cleveland Fabric Shop, it became Jo-Ann Fabrics in 1963, combining the names of the founders' daughters, Joan and Jacqueline Ann.
This closure follows a series of financial struggles for Joann, including two bankruptcy filings since March 2024. The company initially emerged from restructuring with reduced debt and new financing, but worsening conditions forced another bankruptcy just months later.
A spokesperson said earlier in February that Joann would close more than 500 stores nationwide, including most of its Northeast and mid-Atlantic locations. The move aimed to help facilitate a sale to maximize the business's value.
The end of Joann comes as brick-and-mortar retailers struggle against rising costs and online competition. In 2024, more than 7,000 US stores shut down, with analysts predicting an even steeper decline in 2025.
The timeline for Joann's store closures and liquidation sales has not been announced. Customers can buy discounted products at stores, on Joann's website, or through the Joann mobile app.
You can learn more about Joann's bankruptcy process and see the full nationwide list of store closings at joannrestructuring.com.
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