Crafts retailer Joann is set to close all of its stores as part of its bankruptcy proceedings, having failed to find a buyer willing to keep some of its 800 U.S. retail locations operational. The company announced on Sunday that it plans to sell all its assets to a buyer group comprising its lenders and a company named GA Group. Despite hoping for a buyer who would sustain the business, the highest bid received intends to initiate going-out-of-business sales at all locations. Joann will seek court approval for this sale at a bankruptcy hearing scheduled for Wednesday in Wilmington, Del. Founded in 1943 and based in Ohio, Joann mentioned it made every effort to remain operational. The company will honor customer gift cards until Feb. 28 and aims to minimize disruptions to employees, customers, and vendors during the store closures over the coming weeks. Joann filed for bankruptcy in January for the second time in under a year, primarily due to supply chain disruptions. While it managed to keep all stores open during a 2024 restructuring that erased $505 million in debt, suppliers have discontinued some essential products, and unpredictable deliveries of yarn and sewing items hindered its role as a one-stop craft and hobby shop, according to court documents. As of January, Joann operated 800 stores with $538.3 million in inventory and employed 19,000 people across 49 states. It carried $615.7 million in debt, owed over $133 million to suppliers, and spent $26 million monthly on store rents. — news from New York Post
