Joann will close all stores, cease business operations pending court approval
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Fabric chain Joann is going out of business and closing all 800 stores, marking the end of the 82-year-old company that was once the leading destination for DIY and crafts enthusiasts.
Monday’s announcement comes less than two weeks after the retailer announced it would close more than two-thirds of its stores, including 20 in Indiana.
This means previously spared stores—including in Indianapolis, Terre Haute, Lafayette and Evansville—will now close.
The Hudson, Ohio-based company employs 19,000 people, according to court documents.
Joann, which in January filed for its second bankruptcy within a year, has been sold to liquidator GA Group and the retailer’s lenders, it announced Sunday. The sale and closures are pending approval from U.S. Bankruptcy Court in the District of Delaware. The final sale hearing is scheduled for Wednesday.
Stores will begin going-out-of-business sales immediately, the company said on its restructuring website. While the retailer will no longer live on in brick-and-mortar stores, Joann’s brand could survive if another company buys its intellectual property.
In the year since its first bankruptcy, Joann has struggled to improve its inventory and profitability. The company had a hard time finding enough cash to maintain operations, it said in bankruptcy court filings last month. At the time, Joann had $615.7 million in total funded debt obligations and just $8.4 million in cash on hand, according to court documents.