Joann, a major retailer of fabrics and crafts, announced that all of its remaining locations will close by Friday following months of going-out-of-business sales.
The retailer filed for bankruptcy in January and intended to sell off 300 of its 800 locations while closing 500 stores. Ultimately, it was unable to find a buyer for its 800 locations. However, it did find a buyer, the Prepetition Term Loan Agent, for its remaining assets, which has led its going-out-of-business sales.
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The January bankruptcy marked the second time in recent years that Joann has filed for bankruptcy. In March 2024, Joann announced it would file for Chapter 11 and obtain approximately $132 million in new financing. The retailer hoped to reduce its debt by $505 million during this bankruptcy.
Joann stated that its products are currently discounted by at least 70% to 90%. The retailer is also liquidating store equipment.
Founded in 1943 in the Cleveland area, the company currently operates in 49 states.
