Joann has announced its plans to shut down all its fabric and craft stores following a bankruptcy filing in January.
In a statement released on Sunday, the company confirmed that GA Group, along with the Prepetition Term Loan Agent, has been chosen as the winning bidder to acquire nearly all of Joann's assets.
As part of this agreement -- pending approval from the Bankruptcy Court -- the new owners intend to close down the company's operations and begin going-out-of-business sales at all Joann store locations.
"JOANN leadership, our Board, advisors and legal partners made every possible effort to pursue a more favorable outcome that would keep the company in business," the statement read. "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."
Quiksilver, Billabong and Volcom stores are closing in the US in 2025The company also expressed gratitude to its employees and loyal customers, saying, "We deeply appreciate our dedicated Team Members, our customers, and communities across the nation for their unwavering support for more than 80 years."
The announcement follows Joann's recent court motion to close approximately 500 locations as part of its bankruptcy proceedings.
In a statement to ABC News at the time, the company noted that "right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann."
Despite filing for voluntary Chapter 11 bankruptcy last month in the U.S. Bankruptcy Court for the District of Delaware, Joann initially assured customers that stores and its website would remain open, with employees continuing to receive pay and benefits.
Joann's closures reflect a growing trend among retailers adjusting to shifts in consumer spending. With major brands like Kohl's and Macy's also downsizing, Coresight Research predicts more than 15,000 store closures across various businesses in 2025 -- double the number from last year.
