UPDATE: JOANN announced Monday that after bankruptcy court proceedings, all stores will be closed by the end of May.
A spokesperson for the company released the following statement.
“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,” the statement says.
The company said it will work alongside the winning bidders to ensure a smooth transition.
“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 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. We deeply appreciate our dedicated Team Members, our customers and communities across the nation for their unwavering support for more than 80 years.”
Earlier this month, the company said the JOANN location in New Town would close in 2025, one of 500 affected stores as the company navigated its Chapter 11 bankruptcy status, the company announced.
The arts and crafts company announced that it had commenced voluntary Chapter 11 proceedings on Jan. 15. As part of the company’s bankruptcy efforts, stores were monitored for sales.
“As part of the ongoing Chapter 11 process and our efforts to maximize the value of the business, JOANN has filed a motion seeking court authority to begin closing approximately 500 stores across the nation,” the company said at the time. “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.”
“A careful analysis of store performance and future strategic fit for the Company determined which stores should remain operating as usual at this time,” it continued. “Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for JOANN.”