Joann Bankruptcy to Leave 800 U.S. Retail Spaces Vacant

A national craft retailer’s bankruptcy may cause retail tenants to start kicking the (yarn) wheels on vacant spaces.

Ohio-based retailer Joann is set to close all of its 800-plus stores across the country as it goes through the bankruptcy process, the New York Times reported. This development comes only weeks after the company announced the closure of 500 stores.

Though the company said it was trying to find a way to salvage the business earlier this month, hope faded at the end of last week when Joann’s assets were auctioned off as part of its second bankruptcy process within a year. Financial services company GA Group won the auction to acquire virtually all of the company’s assets.

GA Group intends to wind down operations and have going-out-of-business sales at stores across the country, though the bankruptcy court will need to approve the plan. The timeline for the closure of Joann’s portfolio, which spans 49 states, is yet to be determined.

The company’s store count includes 75 in California, 49 in Florida, 42 in Texas, 34 in Illinois and 30 in New York, according to data company ScrapeHero.

The retailer’s struggles have been ongoing. Last March, Joann filed for bankruptcy to reduce its debt, taking itself private in the process. Though it exited bankruptcy protection in August, the retailer wound up back in the same financial distress six months later.

Though its 2024 bankruptcy eliminated $505 million in debt, Joann reported $615.7 million in debt this second time around.

Joann blamed its recent financial woes on inventory shortages and sluggish consumer demand.

In a statement, Joann said leadership “made every possible effort to pursue a more favorable outcome that would keep the company in business.”

While the loss of Joann is a blow to craft consumers, it may present an opportunity for big-box retailers looking to find new spaces, à la last year’s Bed Bath & Beyond shutdown.

— Holden Walter-Warner