What happened
Joann, the 82-year-old fabric and crafts store, said Monday it was closing all 800 of its stores and ceasing operations after liquidation firm GA Group and a lender won “substantially all” of its assets at an auction over the weekend. Joann filed for Chapter 11 bankruptcy in January, for the second time in less than a year. In February, the company said it was closing about 500 of its stores.
Who said what
Joann, founded as Cleveland Fabric Shop in Ohio in 1943, had “long been a standby for creative crafters, offering a plethora of colorful yarns and fabric rolls that filled entire aisles, as well as sewing machines, seasonal products and other crafting supplies,” The New York Times said. The retailer said it “made every possible effort to pursue a more favorable outcome that would keep the company in business.”
Joann expanded and thrived for decades but could not escape the “era of shrinking bricks-and-mortar retail” and rising e-commerce that has claimed a “raft of specialty retailers,” the Akron Beacon Journal said. The chain was hit especially hard by “increased tariffs on Chinese imports” in 2018 and 2019. Joann “got a surprise boost during the pandemic as homebound consumer sought out hobbies,” The Washington Post said, but afterward it returned to its “pre-pandemic downward trajectory.”
What next?
Joann’s sale to GA Group was expected to be approved Wednesday in U.S. Bankruptcy Court in Delaware. The company said its stores, website and mobile app would remain open for a “number of weeks” as it conducts going-out-of-business sales.