Last month we told you about Joann filing for bankruptcy for a second time in less than a year with plans for a possible auction or sale to liquidator Gordon Brothers happening this month.
Today (Feb. 12, 2025) Joann filed a motion with the U.S. District Bankruptcy Court in Delaware seeking permission to close about 500 of its 800 retail locations as part of the ongoing Chapter 11 proceedings.
“Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for JOANN,” the company said in a statement.
In a filing with the court, the company said these stores were identified for closure because of their underperformance that would make them “unlikely to be considered or included in any going concern bid” for purchase of the company. “Given the expense of operating each of the Debtors’ [that’s Joann] retail stores, the Debtors believe it is in the best interest of the Debtors’ estate to immediately commence Store Closing Sales at the subset of underperforming stores.”
The filing also seeks the right to close additional stores in the future and expects to begin store closure proceedings as soon as possible after the hearing, which is set for Feb. 14, if the plan is approved. Any future store closings will be filed with the court and the landlords or other interested parties would have 10 days to object before store closure procedures would begin.
The plan also calls for ending store gift cards and no longer accepting returns, exchanges or granting refunds, and these policy changes would apply to all stores, not just those that are closing, and be effective starting 14 days after approval of the plan. (You can find the brief here as docket 385.)
In an FAQ for customers on the restructuring website (linked below), Joann says if the plan is approved store closing sales would begin Feb. 15 “and could continue for several months.” In the meantime, all stores and the Joann.com website will be open for regular business (no word if there will be liquidation prices on items on the website).
They also noted that they are still seeking alternative bids to the previously reported Gordon Brothers bid, but if that goes through all stores will close.
To check if your store is on the list of 500, go to the Joann restructuring website, scroll to the bottom and you’ll find a link to the store closure list at the bottom right. I’m happy to report my store seems to be safe for now but it sounds like that could change quickly. We’ll continue to update you with Joann bankruptcy news as it happens.
