Founded over 80 years ago, Joann has been a staple for quilters, knitters, and craft enthusiasts. The retailer, headquartered in Hudson, Ohio, filed for Chapter 11 bankruptcy protection in January, marking its second filing in a year. This decision comes as a result of declining consumer demand and inventory shortages, challenges that have become increasingly pronounced for the company.
In March 2024, Joann initially sought Chapter 11 protection but managed to re-emerge as a private company. However, operational difficulties persisted, leading to another bankruptcy filing in January. Despite attempts by leadership to secure a more favorable outcome, the situation necessitated a complete wind-down of operations.
The most recent development features GA Group, in partnership with Joann’s term lenders, as the successful bidder to acquire the majority of Joann’s assets. This acquisition will facilitate an orderly closure of the company’s operations, including going-out-of-business sales at all store locations.
Joann reassured customers via a statement on its website, promising that its physical stores, online platform, and mobile app would remain operational during the liquidation process. While exact closure dates have not been announced, the company indicates that the final sales process is expected to take several weeks. The company expressed a commitment to minimizing the impact on all parties involved.
This closure represents a significant shift in the landscape for craft retailers in the United States, as Joann has long been considered a key destination for craft supplies. The decision to close comes after considerable efforts were made to maintain the company’s operations, including consultations with advisers and legal partners.
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The closure of Joann marks the end of an era for a once-thriving craft retailer. The company’s struggles highlight the difficulties faced by traditional retail models in adapting to shifting consumer behaviors and economic challenges.
