Joann Fabrics announces closure of all 800 Stores across America after unsuccessful sale efforts

Fabric retailer Joann is set to close all of its approximately 800 stores after being unable to secure a buyer willing to keep its locations operational.

The announcement follows Joann’s second Chapter 11 bankruptcy filing within a year. The Hudson, Ohio-based retailer initially sought protection in January, citing weak consumer demand and inventory shortages. At that time, the company had assured that all stores would remain open.

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The company Joanne Fabrics declares bankruptcy

In a statement, the company announced that it will begin nationwide going-out-of-business sales as part of the terms set by the group that acquired its assets in an auction.

"Joann leadership, our Board, advisors, and legal team explored every possible option to secure a better outcome that would allow the company to continue operating," the statement read. "We are committed to collaborating with the winning bidder to ensure an orderly shutdown that minimizes disruption for all stakeholders. We sincerely appreciate our dedicated team members, loyal customers, and communities nationwide for their support over the past 80 years."

What was Joann Fabrics?

Originally founded during World War II by German immigrants as the Cleveland Fabric Shop, Joann grew to become the largest fabric retailer in the U.S.

The company first went public in 2010, but was de-listed within a year. It saw a brief resurgence during the pandemic as crafting surged in popularity but struggled to maintain momentum. Joann returned to the stock market in 2021, but declining sales led to its first bankruptcy filing in 2024.

The company has published a detailed FAQ on its website, providing information about the liquidation sales, which are set to begin immediately