Joann Fabrics to Close All 800 Stores Following Bankruptcy Proceedings
Joann Fabrics, a staple in the fabric and craft industry for over 80 years, has announced the closure of all 800 of its U.S. stores following its recent Chapter 11 bankruptcy filing. Initially, the company was expected to close around 500 locations as part of a restructuring effort. However, after the sale of Joann’s assets to GA Group and the Prepetition Term Loan Agent, the decision was made to shut down all remaining stores and conduct going-out-of-business sales nationwide.
In a statement released on February 23, 2025, a Joann spokesperson confirmed the news, saying, "Following a comprehensive sale process and auction, GA Group together with the Prepetition Term Loan Agent has been selected as the winning bidder to acquire substantially all of Joann’s assets. In connection with this agreement, subject to Bankruptcy Court approval of the transaction, the winning bidders plan to begin winding down the company's operations and conduct going-out-of-business sales at all store locations."
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Why Is Joann Fabrics Closing?
Joann Fabrics' financial troubles have been mounting for years, with declining foot traffic, increased competition from online retailers, and economic challenges impacting its ability to stay afloat. After filing for Chapter 11 bankruptcy for the second time in less than a year, the company initially aimed to restructure and keep some stores open. However, the bidding process resulted in the acquisition of Joann's assets by GA Group and the Prepetition Term Loan Agent, who opted to fully liquidate the company rather than continue operations.
This shift from a partial closure plan to a complete shutdown means that all Joann locations will close in the coming weeks, with going-out-of-business sales beginning immediately. The company's website, Joann.com, and mobile app will remain operational for a limited time as inventory is cleared.
Impact on the Greater Houston Area
In the Greater Houston area, Joann Fabrics operates several stores, including the Copperfield and Willowbrook areas, Katy and Spring. The following locations are slated for closure:
Houston Area Joann Fabric Stores
- 15520 FM 529 Rd, Houston, TX 77095
- 12918 Willow Chase Dr, Houston, TX 77070
- 9960 Old Katy Rd, Houston, TX 77055
- 290 Meyerland Plaza, Houston, TX 77096
- 1219 North Fry Road, Katy, TX 77449
- 16626 Southwest Fwy, Sugar Land, TX 77479
- 25415 Interstate 45, Suite D, Spring, TX 77380
- 1529 W Bay Area Blvd, Webster, TX 77598
Background and Factors Leading to Closure
Founded in 1943 by German immigrants in Ohio, Joann Fabrics became a leading retailer in sewing and fabric supplies, expanding to over 800 stores across 49 states. However, in recent years, the company has faced mounting financial difficulties due to declining foot traffic, increased competition from online retailers, and rising operational costs.
The COVID-19 pandemic temporarily boosted sales as consumers turned to crafting during lockdowns, but demand plummeted post-pandemic. Supply chain disruptions, inflation, and an increasingly digital marketplace further strained Joann's financial health. The company filed for Chapter 11 bankruptcy in March 2024, attempting to restructure its debt, but ongoing losses led to a second bankruptcy filing in January 2025.
Initially, Joann planned to close 500 stores and keep others operational, but during a court-supervised auction, its assets were acquired by GA Group and the Prepetition Term Loan Agent, who opted for a complete liquidation rather than a partial restructuring. As a result, all 800 Joann locations will close, with going-out-of-business sales beginning immediately.
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Customer Information
Joann Fabrics has begun liquidation sales at all locations, with discounted pricing on inventory while supplies last. The Joann.com website and mobile app will remain operational for a limited time during this process.
With the liquidation announcement, the company also expressed appreciation for its employees and customers, stating, "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. We deeply appreciate our dedicated Team Members, our customers, and communities across the nation for their unwavering support for more than 80 years."
Key customer updates include:
- Gift cards will be accepted through February 28, 2025.
- Returns and exchanges will not be accepted during the liquidation process.
- Discount partnerships (such as those for teachers, military personnel, and healthcare workers) have been paused.
Customers looking to take advantage of clearance pricing are encouraged to shop in-store and online as soon as possible, as liquidation sales are expected to run for several weeks before final store closures.
Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.
