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Bankrupt fabric and craft supplies retailer Joann is set to close its entire roster of stores nationwide after failing to find a buyer to keep the lights on.

In a Feb. 22 announcement, the Hudson, Ohio-based chain said going-out-of-business sales would begin immediately as a stipulation of the group that won its assets at auction.

As part of the Chapter 11 process, the company sold off its assets at auction Feb. 21 to financial services GA Joann Retail Partnership. The buyer comprises financial services company GA Group and Joann’s term lenders.

“In connection with this agreement, subject to bankruptcy court approval of the transaction, the winning bidders plan to begin winding down the company’s operations and conduct going-out-of-business sales at all store locations,” Joann said in its statement.

The retailer also said its leadership, board, advisors and legal partners “made every possible effort to pursue a more favorable outcome that would keep the company in business.”

“We are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on all our stakeholders,” Joann said. “We deeply appreciate our dedicated team members, our customers and communities across the nation for their unwavering support for more than 80 years.”

GA Joann Retail Partnership competed against stalking horse bidder Gordon Brothers Retail Partners to acquire “substantially all” of Joann’s business.

Boston-headquartered Gordon Brothers, which specializes in distressed companies, made headlines in December 2024 when it struck a deal to save about half of bankrupt discount chain Big Lots’ stores from going out of business.

A final hearing to approve the liquidation sale will take place Feb. 26 in U.S. Bankruptcy Court for the District of Delaware.

Local impact

The auction comes about a month after Joann declared bankruptcy for the second time in less than a year. Soon after, the company said it was seeking court approval to begin the process of closing down 500 of its 800 locations across the U.S.

After seeking bankruptcy in March 2024, Joann exited Chapter 11 six weeks later as a private company owned by its creditors. As part of the restructuring, Joann’s debt was nearly halved to about $555 million.

In its January 2025 bankruptcy filing, Joann cited inventory issues and sluggish sales as challenges. According to court documents, the company’s liabilities range between $1 billion and $10 billion. It also listed around 19,000 employees, the majority of whom are part-time workers.

Within New Jersey, Joann has stores in Cherry Hill, Paramus, Colonia, Riverdale, Deptford, Shrewsbury, Lawrenceville, Succasunna, Mays Landing, Toms River and Mount Laurel.

According to Joann, its website and mobile app will remain open and operate as normal during the going-out-of-business sales. Gift cards are valid through Feb. 28. However, it paused personalized discounts and discount partnerships, such as those for Girl Scouts and teachers. Additionally, the company will stop accepting returns.

Joann expects it will take “a number of weeks to complete our final sales” and will post dates for store closures online.