Massive craft retailer to shutter last stores after bankruptcy filings, dismal sales

Craft retailer Joann is expected to close the last of its 500 stores by the end of the week after the highest bidder from its second bankruptcy filing in less than a year decided to shutter all locations.The remaining stores span 47 states, including more than a dozen locations in New York.Financial services firm GA Group gained control of Joann soon after the 82-year-old chain filed for bankruptcy in January.In March, GA Group announced plans to initiate closing sales at all 790 Joann locations with up to 40% off discounts.These sales – which included up to 90% off some products, according to customer posts on social media – were expected to last for approximately 12 weeks through the end of May or until supplies last.A spokesperson for GA Group confirmed these plans.Later in March, the firm said it planned to auction Joann’s 790 retail store leases and five distribution centers in April as part of the wind-down process.

It reiterated that the “going-out-of-business” sales would last through the end of May or until supplies run out.The firm closed 255 Joann stores last month.Joann has stopped making sales on its website, warning customers to avoid scams from other imposter sites.Joann was unable to be reached for comment since the company disabled its media team contacts.The fabrics store had first filed for bankruptcy in March 2024, but emerged as a private company a few weeks later, keeping all of its stores open. Joann’s interim chief executive, Michael Prendergast, blamed the second bankruptcy filing on a challenging retail environment, as shoppers cut back on spending amid sticky inflation and sales fell.The company also nodded to inventory issues that were “acute and unexpected,” according to the filing.Executives had shuttered underperforming locations just after the second filing in hopes that the top bidder would consider keeping the rest of Joann’s stores open.“We hope that this process enables us to find a path that would allow Joan...