Crafts chain [Joann Fabric] is shuttering all stores across America a month after filing bankruptcy

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Crafts chain is shuttering all stores across America a month after filing bankruptcy with $615.7million in debt

Daily Mail
By NATASHA ANDERSON
25 February 2025



Joann Fabric and Crafts is shuttering all stores across the US after the retailer filed for bankruptcy for the second time in a year.

The store's parent company Joann Inc. plans to sell all its assets to a buyer group that includes its lenders and a company called GA Group.

The Ohio-based retailer hoped for a buyer that would keep the business alive, but the highest bidder plans to begin going-out-of-business sales at all its stores.

Joann Inc. filed for Chapter 11 bankruptcy protection in January, reporting debt of $615.7million, including over $133million to its suppliers. The company also spends $26million per month on rent at its stores.

The crafts company vowed in last month's filing, which cited sluggish consumer demand and inventory shortages, to keep all of its stores open.

The firm managed to keep its stores open after its first bankruptcy filing in March 2024 - but has now failed to do so, alleging it could not find a buyer willing to preserve its 800 US retail locations.

Joann will seek approval of the sale at a Wednesday bankruptcy court hearing in Wilmington, Delaware.

The anticipated closures come as a blow to generations of quilters, knitters and lovers of crafts across the country who allege Joann was the 'only accessible fabric store for millions of people'.

Many disappointed shoppers say they are 'devastated' that now they will have to turn to online retailers to purchase fabric for their various sewing projects.

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https://www.dailymail.co.uk/yourmoney/article-14433169/crafts-chain-stores-america-bankruptcy-debt.html