Joann Stores Shutting Down After Acquisition
All Joann locations are set to close after the fabric and craft retailer was sold to a new ownership group. The company, which has struggled financially in recent years, has announced plans to shut down operations at all of its stores following an upcoming liquidation process.
Joann’s Financial Struggles Lead to Bankruptcy
After filing for Chapter 11 bankruptcy for the second time in a year, Joann’s remaining assets were auctioned off. The winning bid was secured by retail liquidation firm GA Group and Joann’s term lenders, effectively sealing the fate of the long-standing retailer.
What Happens Next?
The results of the auction are expected to receive formal approval during an upcoming hearing in the U.S. Bankruptcy Court for the District of Delaware. Following this, Joann will begin its official wind-down process, leading to store closures nationwide.
Company’s Official Statement
According to a statement from Joann’s leadership, every effort was made to secure a more favorable outcome that would allow the company to remain in business. Unfortunately, those attempts were unsuccessful, and Joann is now focused on an orderly shutdown that minimizes disruption to employees and customers.
“We deeply appreciate our dedicated team members, our customers, and the communities that have supported us for over 80 years,” the company’s statement read.
Timeline for Store Closures
Scott Carpenter, CEO of GA Group’s Retail Solutions and Wholesale & Industrial Solutions teams, stated that most Joann locations will remain open until the end of May. While some stores had already begun liquidation sales, the discounting process will now extend to all locations.
Key Dates to Remember:
- February 15 – Going-out-of-business sales began at select locations.
- March-April – Discounts expected to increase gradually.
- End of May – Most locations anticipated to close permanently.
Who is GA Group?
GA Group, which won the auction for Joann, has a long history with the company. The firm was previously involved in Joann’s acquisition of House of Fabrics in the late 1990s and played a key role in expanding its retail footprint between 2006 and 2016.
Support for Joann Employees
The new ownership group has announced plans to support Joann’s approximately 19,000 employees. This includes a multimillion-dollar retention plan, job fairs, and assistance with job placement. Employees will also receive time off to attend interviews as they transition to new opportunities.
“We will help Joann close its stores with empathy, professionalism, and efficiency,” Carpenter stated.
Details on Joann’s Going-Out-of-Business Sales
Joann’s liquidation sales, which began on February 15, are expected to continue for several months. The company has confirmed that only in-store inventory will be available for purchase at discounted prices.
What Shoppers Need to Know:
- Discounts Start at 10-20% – Base markdowns have been reported in this range, though select holiday items have been discounted up to 75%.
- No Gift Cards Accepted – Joann has stopped accepting gift cards as part of the restructuring process.
- No Special Discounts – Per Joann’s restructuring website, military, teacher, and healthcare discounts are no longer available.
- No Returns Allowed – Customers will not be able to return items purchased at closing stores.
Conclusion
Joann’s closure marks the end of an era for craft and fabric enthusiasts. Despite efforts to keep the business afloat, financial challenges ultimately led to bankruptcy and liquidation. While the retailer is working to support its employees, customers should take advantage of closing sales before stores shut down permanently by the end of May.
FAQs
1. When will Joann stores close for good?
Most locations are expected to remain open until the end of May, though specific dates may vary by store.
2. Will Joann be accepting coupons during liquidation sales?
No, Joann has stated that it will not honor coupons or special discounts during the going-out-of-business sales.
3. Can I use my Joann gift card?
Unfortunately, Joann is no longer accepting gift cards as part of its restructuring process.
4. Will Joann offer online discounts as well?
The liquidation sales are focused on in-store purchases, and it is unclear whether online discounts will be offered.
5. What should employees do if they need help finding a new job?
GA Group has announced plans to assist employees with job placement and will be organizing job fairs as part of a multimillion-dollar retention initiative.