United States Mourns: Goodbye to the Store Loved by Several Generations

Joann, a renowned chain of stores specializing in crafts and sewing, will close all its locations in the United States. The company announced its total liquidation after failing to find a solution to remain operational.

The closure depends on court approval but inventory liquidation has already begun in more than 800 stores. GA Group and the company's lenders acquired the brand in a bankruptcy auction. They will now manage the closure process and asset sale.

In January, Joann reported having a debt of $615.7 million. The buyers submitted a $105 million credit bid to acquire most of the assets. They also committed to paying cash to settle part of the outstanding debts.

"Joann's management, our board, advisors, and legal partners did everything possible to find a more favorable solution. An outcome that would allow the business to continue," the company stated in a release. "We are committed to working with the buyer to ensure an orderly closure that minimizes the impact on all parties involved."

Liquidation, the Only Possible Path

The U.S. Bankruptcy Court in Delaware will review the sale agreement next Wednesday. If approved, the company's definitive closure will be finalized and the brand will disappear from physical commerce.

For some analysts, this outcome was inevitable. Neil Saunders, director of GlobalData, explained that the company had no recovery options. "With a mountain of debt and a brand increasingly deteriorated, the options for Joann's survival have been exhausted," he noted.

Saunders also highlighted that the retail sector doesn't offer favorable conditions for the company's rescue. "It's not surprising that liquidation has been the final destination," he concluded.

As for the brand's future, there could be interested parties in acquiring its name or intellectual property. However, Saunders believes that few would pay a high price for it. He also considers that an e-commerce group could relaunch the brand in an exclusively digital model. Even so, he warned that "Joann, as we know it, will come to an end."

Two Bankruptcies in Less Than a Year

Joann's closure comes after a long financial crisis. In March 2024, the company declared bankruptcy for the first time. A month later, it managed to exit the process thanks to a court-approved restructuring plan.

During that first bankruptcy, the court allowed the company to eliminate more than $500 million of its debt. At that time, Joann had financial commitments exceeding $1.1 billion.

Thanks to $132 million in financing from its lenders, the company managed to keep its more than 800 stores open and retain around 18,000 jobs. It also delisted from the stock exchange and became a private company.

Despite these measures, the financial situation continued to worsen. At the beginning of 2025, Joann closed several stores and again filed for bankruptcy protection in January. The company justified its decision due to unexpected inventory management issues and the retail sector slowdown.

In February, a court approved the closure of more than 500 stores. From that moment, liquidation sales began nationwide. Now, the process has extended to all its branches, confirming the brand's disappearance from the physical market.

A Historic Brand That Couldn't Adapt

Joann was founded in 1943 by German immigrants and grew steadily in the following decades. By 1980, it already had 500 stores in the United States.

In 2024, the company recorded net revenues of $2 billion. Most of its sales came from art, crafts, and home decor items. The rest correplied to sewing products and additional services.

Now, with its market exit, the company leaves a void in the crafts sector. Its disappearance reflects changes in consumer habits and the impact of e-commerce on physical stores.