Joann Holds Out-of-Business Sales at 500 Stores Following 2nd Bankruptcy Filing

Published: 2/20/2025, 11:22:30 PM EST

Joann Holds Out-of-Business Sales at 500 Stores Following 2nd Bankruptcy Filing — A logo sign outside of a Joann retail store is seen in Arlington Heights, Ill., on Jan. 15, 2025. (Nam Y. Huh/AP Photo)

Crafts and fabrics retailer Joann said it has started going-out-of-business sales after receiving court approval to close hundreds of stores across the United States.

“After carefully reviewing all available strategic paths to address our ongoing industry, economic and financial challenges, JOANN and its financial stakeholders determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business,” the company said on its website.

Joann will be closing approximately 500 of its 829 stores across the United States.

“We anticipate the store closures to occur over the next few months, although some stores may close within a shorter or longer time period,” the company said in a statement.

The company also provided a complete list of all stores that will be closed.

“The remainder of our stores are not impacted by this motion, and will remain open as usual, as will joann.com.”

According to Joann, going-out-of-business sales began on Saturday, after the company received court approval.

“Only inventory available on-site at those stores will be part of the closing sales,” the company said.

If you have any gift cards left, Joann will accept them until Feb. 28. Discounts for Girl Scouts, teachers, military, and healthcare are paused, and no returns are accepted at the stores set to close.

People walk into and out of a Joann store in Garfield Heights, Ohio on Sept. 6, 2007. (Tony Dejak/AP Photo) — People walk into and out of a Joann store in Garfield Heights, Ohio on Sept. 6, 2007. Tony Dejak/AP Photo

Joann’s revenue has been on the decline for several years. The COVID-19 pandemic saw sales spiking with many stuck at home during the lockdowns, looking for ways to spend the time. However, sales dropped once normal life resumed and the retailer saw its debt balloon to $1 billion.

The Ohio-based company filed for Chapter 11 bankruptcy in March 2024, but it secured a restructuring deal with most of its financial stakeholders and other partners, who together pledged $132 million in new funding to help reduce Joann’s debt by $505 million. The company was taken off the stock market and has since tried to survive as a privately owned company.

In January 2025, however, Joann filed for bankruptcy for a second time, and the proceedings to sell off its assets were set in motion. Investment firm Gordon Brothers Retail Partners, LLC, was granted the first bid and as additional buyers came in, an auction date was set for Feb. 21.

A final approval of the auction results is scheduled for Feb. 26.

The auction will determine Joann’s fate. Gordon Brothers has said that, if it wins the auction, it will pursue a complete liquidation of the company, including the closure of all Joann store locations.

However, Joann is hoping for a “going concern sale” to find a buyer who will continue operating the retailer given its current financial state.

After 82 years, Joann has become somewhat of an American staple, providing sewists, quilters, crocheters, crafters, and other creative enthusiasts with all the materials they need.

The company began as a fabric shop in Cleveland, Ohio, in 1943, established by three German immigrant couples—the families Reich, Rohrbach, and Zimmerman. The company joined the American Stock Exchange in 1969 and went public on the Nasdaq market in 2021.