Joann Fabrics announced Feb. 24 that the company is going out of business and all stores will be closing. This comes after previous announcements of 500 stores, including 16 in Wisconsin were closing. Seven stores were to remain open across the state.
After filing for Chapter 11 bankruptcy for the second time within a year, Joann’s remaining assets were put up for auction. Retail liquidator GA Group and Joann’s term lenders won the bidding for the struggling company on Saturday. A final sale hearing was set for Feb. 26.
“Joann leadership, our Board, advisors and legal partners made every possible effort to pursue a more favorable outcome that would keep the company in business,” the company statement reads. “We are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on all our stakeholders.”
Going-out-of-business sales will begin imminently with the closures being finalized in May, pending regulatory approval. Gift cards will be accepted through the end of the month, while all sales are final and no returns will be accepted.
Last week, Joann Fabrics announced the popular craft store chain located at 1226 S. Koeller St. in Oshkosh would close its doors later this year and was among 16 locations across the state to shut down after the company filed for bankruptcy last year.
While no closure date has been set, court documents first found by the Sheboygan Press have revealed that fixtures, furniture and other equipment can’t be sold until April 19. However, sales started as early as Feb. 15, according to an FAQ page on the company’s website. Online shopping will remain available for customers.
Joann Fabrics filed for bankruptcy in March of 2024 after deciding to take the company private. However, they were not out of the woods, and previous rounds of closures quickly followed, as well as another declaration of bankruptcy last month. That release did not include any mention of closing stores in the state.
In a prepared statement, a Joann spokesperson said that the closures are due in part because of the ongoing Chapter 11 process — a type of bankruptcy allowing a debtor to reorganize its debt and continue operating — while trying to maximize the value of the business.
“This was a very difficult decision to make, given the major impact we know it will have on our team members, our customers and all of the communities we serve,” the spokesperson said. “A careful analysis of store performance and future strategic fit for the company determined which stores should remain operating as usual at this time. Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann.”
Joann Interim Chief Executive Officer Michael Prendergast said he wanted to thank all the dedicated customers and employees for they’re years of service to the chains that are set to close in a message in January.
“We remain committed to continuing to support them and serving our customers – the sewists, quilters, crocheters, crafters and other creative enthusiasts we have served for more than 80 years – during the process,” Prenergast said.
The company was founded in 1943, with a single storefront in Cleveland, Ohio, and later grew into a national chain. Formerly known as Jo-Ann Fabric and Craft Stores, the company rebranded itself with the shortened “Joann” name for its 75th anniversary.
Currently, there are 23 Joann’s locations across the state, including stores in Appleton, Green Bay, Fond du Lac, Sheboygan and Milwaukee.
