In just a few days, one-third of Joann stores will close their doors after the company filed for bankruptcy for the second time in January of this year and entered Chapter 11 of the U.S. Bankruptcy Code. The remaining locations continue with liquidation sales. Here’s everything you need to know.
When will Joann stores close?
The company announced it plans to close 500 of its approximately 850 stores nationwide, although the closures will happen in stages. The first round, which includes 255 stores, is scheduled for late April. The rest of the targeted locations will cease operations in May.
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Which Joann stores are closing?
Most of the 255 stores shutting down next week are located in the following states:
- California
- Florida
- Illinois
- Michigan
Why is Joann closing its stores?
The retailer first filed for bankruptcy in March 2024 after securing approximately $132 million in new funding to address its $1 billion debt. This led to the closure of several stores before the company filed for Chapter 11 again in January 2025 to facilitate a sale process aimed at maximizing the company’s value.
“Right-sizing our store footprint is a key part of our efforts to ensure the best path forward for Joann,” said a company spokesperson in a press release.
How long will Joann’s liquidation sales last?
Following its bankruptcy filing earlier this year, Joann Fabrics is in the process of closing all of its stores and began a liquidation sale on February 15, which will continue for several more weeks. For now, customers can shop in-store, online, or via the mobile app. According to a company statement, only remaining store inventory will be sold.
Customers can find discounts of up to 75%, though promotions vary by location. Some of the offers available at certain stores include:
- Cotton Canvas: 25% off
- Siser Vinyl: 20% off
- Blizzard Fleece: 30% off
- Spray Paint: 10% off
- Christmas Flowers: 70% off
- Candles and Accessories: 20% off
- Circuit Cutting Materials: 20% off
- Licensed Fabrics: 20% off
- Food Crafting: 10% off
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Who founded Joann Fabrics?
In 1943, German immigrants Hilda and Berthold Reich, Sigmund and Mathilda Rohrbach, and Justin and Alma Zimmerman opened the Cleveland Fabric Shop in Cleveland, Ohio. As the business grew, it adopted the name Jo-Ann Fabrics in 1963—a combination of the daughters’ names from both families: Joan and Jacqueline Ann.
In 1969, Jo-Ann Fabrics became a publicly traded company on the U.S. stock exchange under the name Fabri-Centers of America, Inc. In 1994, the company made its first acquisition by purchasing Cloth World.
In 1998, Fabri-Centers acquired House of Fabrics, which had previously operated under the names Fabricland, Fabric King, and So-Fro Fabrics. That same September, the company rebranded as Jo-Ann Stores Inc., and all its locations adopted the Jo-Ann Fabrics brand.
What is Chapter 11 of the U.S. Bankruptcy Code?
Chapter 11, commonly known as the “reorganization chapter,” allows businesses, partnerships, or individuals to restructure their assets and liabilities without having to liquidate all their holdings.
Who can file for Chapter 11 protection?
U.S. law allows any business or individual with a domicile, place of business, or assets in the country to seek court-supervised restructuring under Chapter 11 provisions. There is no minimum or maximum asset value required for a foreign company to file under Chapter 11 in the U.S. In some cases, deposits held by the U.S.-based law firm handling the bankruptcy process may qualify as assets, allowing the debtor to file for Chapter 11 protection.
