Retail Giant Joann Seeks Bids on All 790 Stores Amidst Lack of Rescuer Appearing
Joann's final chapter has begun as the iconic fabric and crafts retailer, now 82 years old, faces closure after GA Group and A&G Real Estate Partners announced plans to auction all 790 of its store leases and five distribution centers. This move comes following Joann's Chapter 11 bankruptcy filing for the second time within a year, signaling no second chance for the Ohio-based retailer.
In its latest bankruptcy round, Joann cited inventory issues as the main cause, labeling them as "acute and unexpected." The retailer, once privatized after its first bankruptcy filing in March 2024, now finds itself shutting down all stores, contrary to earlier plans to close 500 locations while keeping around 300 operational. Despite every effort made, Joann could not find a suitable buyer willing to keep its stores open.
A Going-Out-Of-Business sale is ongoing at all 790 locations, offering customers significant discounts on a wide range of crafting, sewing, and home décor products, with initial discounts starting at up to 40% off store merchandise. The store leases and properties are up for grabs, with a bid deadline set for April 16 and an auction scheduled in New York on April 22. These leases encompass various real estate types across 49 states, with a range of sizes from 7,500-square-feet to 52,000-square-feet.
The properties are expected to attract strong interest from big box retailers in search of expansion opportunities, as store availability remains a constraint. Most Joann stores will stay open for Going-Out-Of-Business sales through May or until their merchandise runs out. Furniture, fixtures, equipment, and the retailer's intellectual property will also be sold as part of the closing process.
"Joann has been a cherished destination for makers and craft enthusiasts for more than eight decades," said Tim Shilling from GA Group. "As we commence this store closing process, our primary focus is to ensure a smooth wind-down of the retailer's operations, offering customers exceptional savings on their favorite crafting and home décor products in the meantime."
In February, GA Group was selected as the successful bidder to monetize substantially all of Joann's assets, and is managing the store closing process alongside Tiger Group as part of a joint venture.
- Joann, facing closure after filing for bankruptcy for the second time, is now auctioning off all 790 of its store leases and five distribution centers.
- Despite earlier plans to keep around 300 stores operational, Joann could not find a suitable buyer and will now shut down every location, which are currently undergoing Going-Out-Of-Business sales.
- Big box retailers are expected to show strong interest in Joann's store leases which are up for grabs, with a bid deadline set for April 16.
