Customers chase discounts of up to 90% as retail giant closes around 800 stores in 49 states, ends online sales, and sinks after billion-dollar bankruptcy in the US.

Written by Romário Pereira de Carvalho

Published on 28/05/2026 at 08:41

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American chain Joann shuts down operations after bankruptcy, closes about 800 stores in 49 states, halts online sales, and leaves thousands of employees affected by the fabric and craft retail crisis.

Joann, an 82-year-old retail chain linked to the sewing sector, will permanently cease its activities following a new bankruptcy filing, operational losses, and a decline in consumption. The decision involves closing 790 stores, ending online operations, total liquidation of stock, and auctioning contracts. The company is based in the United States.

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Joann closes stores after failed restructuring attempt

The financial services company GA Group took full control of Joann after the chain filed for bankruptcy in January. The brand, formerly known as Jo-Ann Fabrics, had changed its name to Joann in 2018.

The change was part of an attempt to expand beyond fabrics and sell a wider variety of products. However, the strategy did not prevent the advance of the financial crisis that hit the retailer.

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Total liquidation was decided after highest bid in judicial process

The decision to close all units came after the highest bid in the judicial process indicated that the best course of action would be the complete liquidation of the operation.

The measure replaced the initial expectation of keeping part of the chain operational.

Before the final closure, Joann shut down 255 stores. The remaining approximately 500 branches were closed later, completing the end of the retailer’s physical presence.

The impact went beyond the stores. The company also completely halted sales through the official website, ending the digital operation that could still serve former customers during the liquidation process.

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Inflation, drop in sales, and stock problems worsened crisis

The interim CEO of Joann, Michael Prendergast, attributed the second bankruptcy filing to a highly challenging retail environment. He cited the sharp reduction in consumer spending amid persistent inflation.

The company also faced stock problems classified as unexpected. At the beginning of the process, executives chose to close only the underperforming branches, hoping to find an investor capable of preserving the rest of the operation.

In January, Prendergast stated that he hoped the process would allow finding a way for Joann to continue operating as a going concern. However, the evolution of the case led to total liquidation.

Store and distribution center contracts enter closure

As part of the final stages, the company announced in March that it planned to auction the 790 store lease contracts and five distribution centers in April.

Joann also issued a warning for former customers to avoid scams from fake websites using the brand’s name. The retailer deactivated all customer service channels and press office contacts.

More details about the company

Joann was a retailer in the United States, headquartered in Ohio, known for selling fabrics, sewing items, craft materials, yarns, decoration products, and items used in DIY projects.

The company was founded in 1943, initially as Cleveland Fabric Shop, and over the decades established itself as one of the leading American chains catering to the sewing, crafting, and creative activities audience.

Before closing, the company operated about 800 stores across 49 states in the US and had approximately 19,000 employees, including thousands of part-time workers.

The brand, formerly called Jo-Ann Fabrics, started using the name Joann in 2018 as part of an attempt to broaden its image beyond fabrics and strengthen the sale of other products.

In the most recent bankruptcy process, the company reported debts of $615.7 million, in addition to more than $133 million owed to suppliers, figures that help gauge the size of the crisis that led to the total closure of the operation.

This article was prepared based on the information from the provided source material, with data, numbers, and statements preserved as per the consulted material.

Customers chase discounts of up to 90% as retail giant closes around 800 stores in 49 states, ends online sales, and sinks after billion-dollar bankruptcy in the US.

American chain Joann shuts down operations after bankruptcy, closes about 800 stores in 49 states, halts online sales, and leaves thousands of employees affected by the fabric and craft retail crisis.

Joann closes stores after failed restructuring attempt

Total liquidation was decided after highest bid in judicial process

Inflation, drop in sales, and stock problems worsened crisis

Store and distribution center contracts enter closure

More details about the company

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Customers chase discounts of up to 90% as retail giant closes around 800 stores in 49 states, ends online sales, and sinks after billion-dollar bankruptcy in the US.

American chain Joann shuts down operations after bankruptcy, closes about 800 stores in 49 states, halts online sales, and leaves thousands of employees affected by the fabric and craft retail crisis.

Joann closes stores after failed restructuring attempt

Total liquidation was decided after highest bid in judicial process

Inflation, drop in sales, and stock problems worsened crisis

Store and distribution center contracts enter closure

More details about the company

With billions in loans, China is rebuilding Nigeria’s railway network from scratch, abandoning the British colonial tracks that have turned to scrap and creating a corridor of over 1,300 km to take the load off the roads of Africa’s largest economy.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

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In China, even those who beg on the street already have a QR Code, paper money has practically disappeared from daily life in just ten years, and the entire country has come to live on invisible payments via mobile phones.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

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