Joann Fabrics to Close All Stores After Bankruptcy Auction

News Summary

In a surprising turn of events, Joann Fabrics is set to close all of its over 800 stores nationwide following a bankruptcy auction outcome. Initially, the company had suggested that it would maintain around 300 locations, but changes in circumstances have led to this decision. Despite some locations starting going-out-of-business sales, customers will have limited time to use gift cards and returns will no longer be accepted. With a rich history in the crafting industry, Joann Fabrics will be missed by many.

Joann Fabrics to Close All Stores After Bankruptcy Auction

In an unexpected twist, Joann Fabrics is closing the doors on all of its more than 800 stores across 49 states following a recent bankruptcy auction. The beloved fabric and craft retailer had previously hinted that it would keep around 300 stores open, with locations in cities like Lexington and Louisville being on that list. However, plans have drastically changed after the auction concluded.

Troubling Times for Joann Fabrics

This isn’t just a temporary bump in the road for Joann Fabrics, which has faced financial turbulence over the past year. The company has officially filed for bankruptcy two times within a span of less than a year. The first filing hit back in March 2023, followed by another in January 2024. Each of these filings was largely driven by inventory shortages that contributed to its challenging financial situation.

New Ownership on the Horizon

Undergoing a transformation, Joann Fabrics has announced that the GA Group, in collaboration with the retailer’s term lenders, has emerged as the successful bidder to acquire the company’s assets during the auction process. This shift could bring about substantial changes for the brand, pending approval from the U.S. Bankruptcy Court for the District of Delaware.

Going-Out-of-Business Sales Beginning Soon

In the wake of this significant change, shoppers can anticipate going-out-of-business sales starting at all remaining store locations. In fact, some locations have already kicked off these sales prior to the auction, especially those designated on the original list of 500 stores slated for closure. A rush of bargain-hunters is expected as customers look to snag deals on their favorite fabrics and crafting supplies.

Gift Cards and Returns Policy

For those with Joann Fabrics gift cards, it’s important to note that the company will only accept them until February 28. As for returns, customers will find it difficult as returns will no longer be accepted, marking a significant change in policy as the store winds down operations.

Store Hours for Lexington Location

If you’re in the area and want to visit your local Joann Fabrics, the remaining store hours for the Lexington location will be open from 9 a.m. to 7 p.m. Monday through Saturday, and from 10 a.m. to 6 p.m. on Sunday. Shoppers are encouraged to take advantage of the remaining time to find that perfect fabric for upcoming projects.

Updates to Come

As the situation develops, updates regarding specific closure dates and further details on the going-out-of-business sales will be communicated to customers as soon as possible. It’s a bittersweet farewell for a company that has been a staple in the crafting community for over 80 years.

Thank You and Farewell

As they prepare to shut their doors, Joann Fabrics has expressed gratitude to its dedicated team members, loyal customers, and supportive communities. With a rich history of providing materials for countless creative endeavors, the store will surely be missed by many.

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