Joann, the fabric and craft retailer headquartered in Hudson, Ohio, is set to close all of its store locations after being acquired by a new ownership group comprising Retail liquidator GA Group and Joann’s term lenders. The decision follows the company’s second Chapter 11 bankruptcy filing within a year, which led to an auction of its remaining assets. The auction concluded on Saturday, with the results awaiting formal approval during a hearing scheduled for Wednesday in the U.S. Bankruptcy Court for the District of Delaware. n nInitially, Joann had announced the closure of “approximately 500” of its over 800 U.S. locations. However, the latest development confirms that all stores will now cease operations after conducting going-out-of-business sales at each site. In a statement, Joann leadership expressed their efforts to avoid this outcome, stating, “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.” The company also acknowledged its team members, customers, and communities for their support over its 80-year history. n nScott Carpenter, CEO of GA Group’s Retail Solutions and Wholesale & Industrial Solutions teams, revealed that most Joann stores would remain operational until the end of May. The going-out-of-business sales, which began last week at the initially targeted 500 stores, will now expand to all locations. n nGA Group, known for its decades-long association with Joann, including aiding in the acquisition of former competitor House of Fabrics in the late 1990s, plans to implement a “multimillion-dollar retention plan” for Joann’s approximately 19,000 employees. This initiative includes organizing job fairs and providing time off for workers to seek new employment. GA Joann Retail Partnership outbid stalking horse bidder Gordon Brothers Retail Partners to secure ownership. n nThe going-out-of-business sales commenced on Feb. 15 and are expected to continue for several months. Only on-site inventory will be part of the sales, with discounts reportedly ranging from 10-20% on base items and up to 75% on some Christmas products. Joann’s restructuring website notes that gift cards are not being accepted, and discounts for specific groups, including Girl Scouts, teachers, military, and healthcare workers, have been paused. Additionally, item returns are not permitted at closing locations. n n— news from USA TODAY
