KYLE MURPHYStaff Writer

After a turbulent start of 2025, fabric and craft retailer JOANN’s will officially be going out of business.

Following its announcement in January that it would be filing for Chapter 11 bankruptcy for the second time in a year, JOANN officials shared the company was going to close approximately 500 of its 800 stores as part of its plan to facilitate a sale process “to maximize the value of its business.” At the time of its filing, the company was seeking the court’s approval to commence a process for the sale of substantially all of its assets, under Section 363 of the U.S. Bankruptcy Code pursuant, where Gordon Brothers Retail Partners, LLC (“Gordon Brothers”) would serve as the “stalking horse” bidder. Per the filing at the time, the proposed transaction was subjected to higher and better offers, among other conditions.

The remaining assets were put up for auction, and retail liquidator GA Group came out on top as the winning bidder. According to court records, the auction results are expected to be formally approved during a hearing this week in the U.S. Bankruptcy Court for the District of Delaware.

“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,” a spokesperson for JOANN said in a statement. “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.”

Scott Carpenter, CEO of GA Group’s Retail Solutions and Wholesale & Industrial Solutions teams, said in a statement that most closing stores will remain open until the end of May.

In a customer FAQ (Frequently Asked Questions) on its restructuring website, JOANN representatives said any dates for store closures or changes to the website and app will be communicated as soon as possible, and we expect it will take a number of weeks to complete our final sales.

“We are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the negative impact on all JOANN team members, vendors, customers and communities,” JOANN representatives said. “Subject to court approval of the sale transaction, we expect to begin, or in some cases continue, going-out-of-business sales at all locations immediately.”

JOANN stores, JOANN.com and the mobile app will remain open and operating as the going-out-of-business sales are conducted.

“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,” the JOANN spokesperson said. “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.”

JOANN at Northgate Mall in Tullahoma was originally one of the 10 Tennessee locations that made the store closure list of the 500 stores nationwide. JOANN Fabrics and Crafts first opened its doors at Northgate Mall in May 2014, occupying a portion of the former Dillard’s that sat vacant for a few years prior.

Additional information regarding JOANN’s financial restructuring is available at JOANNRestructuring.com.