Why did Joann decide to close all its stores despite initially planning to keep them open during bankruptcy proceedings?

Joann decided to close all its stores after the highest bidder in its asset sale intended to start going-out-of-business sales at all locations, rather than continuing operations. This decision reflects the company's inability to find a buyer willing to keep the business running as usual.

What challenges did Joann face leading up to its bankruptcy and store closures?

Joann faced significant challenges including a tough retail environment, inventory issues, and disruptions in supplier deliveries. These factors, combined with financial struggles, led to its second bankruptcy filing and eventual store closures.

How will customers be affected by the store closures, particularly regarding gift cards?

Customers can expect liquidation sales at closing stores. However, gift cards will only be accepted until February 28, 2025, after which they will no longer be valid.

What broader retail trends does Joann's situation reflect?

Joann's closure reflects a broader trend of brick-and-mortar retailers facing challenges post-pandemic, including increased online competition and shifts in consumer spending. This trend is expected to lead to thousands of store closures across various businesses in 2025.

3 sources·Business

Joann Fabric Retailer Announces Store Closures After Bankruptcy

Joann, a leading fabric and craft retailer, is closing all 800 stores following second bankruptcy amidst financial struggles.

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Joann's financial troubles could reflect a larger problem for retailers in the years to come.
Full list of Joann Fabrics stores closing in 2025
Newsweek·23d
Mostly Reliable
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Center
This outlet is balanced or reflects centrist views.
The fabric and craft retailer Joann, which had already announced the closure of hundreds of stores, this week said the chain will shut down completely.
Joann store liquidation: The latest on sales, gift cards, closing date
Boston Herald·23d
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Leans Right
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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.
Fabric giant Joann is going out of business and closing all of its 800 stores
NPR·23d
Reliable
This source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.
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Center
This outlet is balanced or reflects centrist views.

Feb 25th, 2025, 4:21 PM ET

Summary

A summary of the key points of this story verified across multiple sources.

Joann, the fabric retailer with 800 stores, is shutting down as it files for bankruptcy for the second time. The company has cited losses from online competition and disruptions due to COVID-19 as key factors. Customers can expect liquidation sales, but gift cards will only be accepted until Feb. 28. This marks the end of an 80-year presence in the crafting sector, leaving its stores with significant financial losses and operational challenges. Analysts indicate this trend reflects broader issues facing brick-and-mortar retailers post-pandemic.

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