Topline:
Joann, the major national retailer of fabric and craft supplies, is going out of business and closing all of its roughly 800 stores in 49 states across the U.S.
The backstory: Last week, the retailer announced it planned to close 60% of its stores as slumping sales and declining market forced it into its second Chapter 11 bankruptcy in less than a year. On Sunday, the company announced that it was being sold to the GA Group.
What's next? Joann stores will continue to accept gift cards through Feb. 28. But personalized discounts and discount partnerships, such as those for Girl Scouts and teachers, are being paused, and the company will stop accepting returns. The liquidation sales are set to begin immediately and could take "a number of weeks" to complete, the company noted in an FAQ on its website.
Joann, the major national retailer of fabric and craft supplies, is going out of business and closing all of its roughly 800 stores in 49 states across the U.S.
The more than 80-year-old chain formerly known as Jo-Ann Fabrics had been struggling financially for several years following a DIY-driven uptick in sales during the early days of the pandemic.
Joann has lost market share to online retailers and brick-and-mortar competitors such as Hobby Lobby and Michaels, retail analyst Neil Saunders told NPR earlier this month.
The company announced on Sunday that it was being sold — the result of its second bankruptcy filing in less than a year — to the GA Group along with its prepetition term lender.
"In connection with this agreement, subject to Bankruptcy Court approval of the transaction, the winning bidders plan to begin winding down the Company's operations and conduct going-out-of-business sales at all store locations," Joann said in a statement.
The liquidation sales are set to begin immediately and could take "a number of weeks" to complete, the company noted in an FAQ on its website.
Joann stores will continue to accept gift cards through Feb. 28. But personalized discounts and discount partnerships, such as those for Girl Scouts and teachers, are being paused, and the company will stop accepting returns.
The Hudson, Ohio-based retailer filed for bankruptcy a year ago, aiming to restructure its ballooning debt. It said at the time that stores would remain open.
But Joann filed for bankruptcy again in January, and interim CEO Michael Prendergast said at the time that executives believed that selling the company was the best course of action.
Earlier in February, as Joann was seeking a buyer, it announced that it would close about 60% of its retail shops nationwide.
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