Key Takeaways:

• Joann Inc. is closing all stores after filing for Chapter 11 bankruptcy for the second time.
• The company will begin liquidation sales immediately following an asset auction.
• Persistent financial struggles and weak consumer demand have driven the closure decision.

Joann Inc., a staple in the fabric and crafts retail industry for over 80 years, has announced the closure of all its stores across the United States after filing for Chapter 11 bankruptcy for a second time. The Hudson, Ohio-based retailer initially declared bankruptcy earlier in January 2024, citing sluggish consumer demand and operational challenges that have burdened its viability in the competitive retail landscape.

This decision follows an announcement earlier this month where Joann revealed it would close approximately 500 of its 800 locations. However, after failing to secure a buyer willing to keep the stores open, the company reversed course and confirmed that all remaining locations would cease operations soon. The financial services company GA Group has successfully acquired most of Joann's assets and will oversee the going-out-of-business sales, as stated in a recent communication posted on HuffPost.

Joann previously indicated plans to keep its stores operational during its bankruptcy proceedings, yet the ongoing struggles with inventory shortages and late payments to suppliers ultimately led to this significant final decision. Company leadership emphasized in statements that they attempted to explore various avenues to reverse the downturn but ultimately resorted to liquidating their assets to mitigate further losses.

The liquidation process will commence shortly, with significant sales expected for customers looking to take advantage of last-minute deals on crafting supplies like fabrics, yarns, and home decor. Joann has also reassured customers that gift cards will be honored until February 28, 2025. As indicated in the Newsweek article, the path leading to these closures mirrors broader challenges facing brick-and-mortar retailers, particularly those compelled to compete with the growing dominance of online shopping.

Reportedly, after the COVID-19 pandemic, many retailers, including Joann, have been grappling with fluctuating consumer preferences which have exacerbated their existing financial woes. Experts suggest that the current landscape may signal a troubling trend for similar businesses unable to adapt swiftly to the evolving marketplace.

For those interested in the timeline of events and more detailed insights, further information can be found by visiting The New York Times coverage.