Joann begins liquidating up to 90% of sales as the chain confirms it will close six stores after declaring bankruptcy last year

FOLLOWING a Chapter 11 bankruptcy filing last spring, Joann confirmed the locations of six closing stores.

As locations close, craft enthusiasts can take advantage of liquidation sales for up to 90% off.

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Joann, the popular craft and fabric retailer formerly known as Jo-Ann Fabrics, has been around for over 80 years and has stores in almost every U.S. state.

When the company filed for bankruptcy last March, rumors swirled that Joann would conduct mass closures or even go out of business.

The chain has since made it clear that neither will be the case.

“We remain committed to our suppliers, partners, team members and other stakeholders and are focused on ensuring we continue to operate as usual so we can continue to best serve our millions of customers across the country,” Joann Chief Financial Officer Scott Sekella said in a statement .

However, Joann confirmed to Retail Dive that a handful of locations across the US would be closing.

The list includes stores in the following locations:

• Burlington, Iowa
• Owings Mills, Maryland
• Holyoke, Massachusetts
• Ithaca, New York
• Hickory, North Carolina
• Williamsport, Pa

The locations will be closed “as part of routine site assessment and optimization,” said Amanda Hayes, director of corporate communications, diversity and inclusion at Joann.

“We have also opened new and remodeled locations in recent months, including new stores in Great Falls, Montana, and Maplewood, Minnesota,” she added.

Local news stations have also reported that Joann locations in Hermitage, Pennsylvania, and Cockeysville, Maryland, would be closing.

As stores close, buyers can expect liquidation sales.

For example, at the Hermitage, Pennsylvania location, all items are offered at 50 to 70 percent off, according to signs outside the store.

The location will close on Jan. 19, a Joann official confirmed to local NBC affiliate WFMJ-TV.

The Joann in Burlington, Iowa, will also close Jan. 19, store manager Barbara Boyles told a local branch.

Closure of Joann locations

• Burlington, Iowa
• Cockeysville, Maryland
• Owings Mills, Maryland
• Holyoke, Massachusetts
• Ithaca, New York
• Hickory, North Carolina
• Hermitage, Pennsylvania
• Williamsport, Pa

At their location, everything in the store is marked down 70 to 90%.

Money problems

News of the Joann locations closing follows the chain’s Chapter 11 bankruptcy filing amid ongoing financial difficulties.

The chain filed for bankruptcy in March 2024 after a sales boom during the pandemic faded and the company was no longer able to pay its accrued debts.

Joann said in a December 2023 earnings report that it had about $1.2 billion in long-term debt.

As part of the bankruptcy process, Joann received $153 million in new financing.

The company’s creditors also agreed to forgive about $505 million in debt and assume the company’s equity following bankruptcy.

The chain received approval from a U.S. bankruptcy judge to restructure in April 2024 and successfully exited bankruptcy that same month.

Other popular retailers also struggled to stay afloat.

Party City, for example, has confirmed that its final closure date is approaching as 695 stores are officially “dissolved” in a “bankruptcy auction.”

In addition, a furniture retailer will close a third of its branches and start an “everything must go” sale.