Hudson, Ohio — According to a FAQ fact sheet distributed to customers, Joann plans to close approximately 500 of its 800 remaining stores in the U.S. as part ongoing Chapter 11 bankruptcy proceedings. The arts-and-crafts retailer filed a motion on Feb. 12, 2025 seeking court authority to begin the closings. If approved, going-out-of-business sales at underperforming stores will begin on Feb. 15 and continue for several months.
The remainder of Joann’s store fleet — which spans 49 states — is not impacted and will remain open as usual. A full list of stores included in the motion is available at: www.JOANNRestructuring.com.
This announcement comes 1 month after Joann filed for bankruptcy for the second time in less than a year.
“This was a very difficult decision to make, given the major impact we know it will have on our team members, our customers and all of the communities we serve,” the company said in an emailed statement to The New York Times.
Joann first filed for bankruptcy in March 2024. However, since that time, the Hudson, Ohio-based company has faced “significant and lasting challenges in the retail environment,” as well as “constrained inventory levels.” Combining these headwinds with its “current financial position,” Joann felt forced to take this step, it said in a company statement.
As of January 2025, when it filed for Chapter 11 bankruptcy protection for a second time, the retailer’s debt totaled $615 million, according to CNN.
The company plans to sell all its assets, with Gordon Brothers Retail Partners — which recently acquired many of Big Lots’ assets — named as the stalking horse bidder.
Joann Inc. was founded in 1943 as a single storefront in Cleveland.
SOURCE: Joann Inc., The New York Times, CNN, Shopping Center Business, Retail & Restaurant Facility Business