Joann Fabrics to Close All Stores Following Second Bankruptcy Filing

The 82-year-old retailer is liquidating assets and holding final sales after failing to recover from financial struggles and declining consumer demand.

Joann Fabrics filed for Chapter 11 bankruptcy for the second time in January 2025, citing $615.7 million in debt and ongoing financial challenges.
The company announced it would close all 800 stores nationwide, with going-out-of-business sales expected to continue through May or until supplies run out.
Customers expressed frustration over the sudden cutoff for gift cards on February 28, with many criticizing the lack of clear communication about the policy change.
Joann has also ceased offering personalized discounts for groups such as teachers, military personnel, and healthcare workers, as well as stopped accepting returns.
GA Group and A&G Real Estate Partners are managing the liquidation process, including the auction of store leases, distribution centers, and intellectual property in April.

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