JoAnn Fabric and Crafts Closes All Stores Following Bankruptcy

Joann, the Hudson, Ohio-based fabric and craft retailer, closed all of its nearly 800 store locations across 49 states by the end of May 2025. The total liquidation followed a series of financial struggles and two Chapter 11 bankruptcy filings within a single year, which ultimately led to the company’s assets being auctioned off.

The retailer, which had operated for more than 80 years, first filed for bankruptcy in March 2024, a move that resulted in the company becoming privately held. However, the company filed for bankruptcy a second time in January 2025. Michael Prendergast, the interim chief executive officer of Joann, stated that the decision was necessitated by the retail environment and the company’s financial state.

The last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step

Michael Prendergast, interim chief executive officer of JOANN

Auction and Ownership Transition

Following the second bankruptcy filing, Joann’s remaining assets were put up for auction. On February 21, 2025, the retail liquidator GA Group and Joann’s term lenders won the bidding for the company. In collaboration with this new ownership group, the retailer announced it would shut down all operations after conducting going-out-of-business sales at every location.

The company acknowledged that leadership and legal partners attempted to find an alternative that would have allowed the business to continue operating. A company statement noted:

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

Joann company statement

The auction results were subject to formal approval by the U.S. Bankruptcy Court for the District of Delaware during a hearing scheduled for February 26, 2025.

Closure Timeline and Store Impact

The wind-down of operations occurred in phases throughout the spring of 2025. According to a spokesperson for GA Group, 255 locations were closed or scheduled for closure by April 30, 2025. The remaining 535 stores were set to close during the month of May 2025.

These closures affected hundreds of locations across 40 states and eventually spanned 49 states, including several stores in Boise. Scott Carpenter, CEO of GA Group’s Retail Solutions and Wholesale & Industrial Solutions teams, confirmed that most locations remained open until the end of May to facilitate the final sales.

While physical stores conducted going-out-of-business sales, the company’s digital operations were ceased. Joann’s website stopped accepting online orders, though it continued to provide information regarding store locations and available discounts for customers visiting the physical shops.

Market Challenges and Competition

The company’s decline followed a period of increased sales during the early stages of the pandemic, driven by a surge in DIY projects. However, the retailer struggled to maintain that momentum in the following years. Retail analyst Neil Saunders noted that Joann lost significant market share to both online retailers and brick-and-mortar competitors, specifically citing Michaels and Hobby Lobby.

The financial instability led to the initial announcement in February 2025 that the company would close approximately 500 of its 800 locations. This plan was later expanded to a total closure of all stores after the asset auction was finalized.