KYLE MURPHYStaff Writer

Following its announcement of filing for Chapter 11 bankruptcy for the second time in a year, JOANN unveiled plans to close 500 of its 800 stores across the country–which includes the Tullahoma location at Northgate Mall.

“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,” representatives said in a statement published Wednesday, Feb. 12. “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. Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for JOANN.”

Unfortunately for shoppers in Tullahoma and in the local area, JOANN at Northgate Mall was one of the 10 Tennessee locations that made the store closure list. 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.

The fabric and crafts company originally filed for bankruptcy in March 2024, citing increasing interest rates and decreasing sales following the COVID-19 pandemic. The company would exit from Chapter 11 bankruptcy the following month and delisted from the NASDAQ stock exchange to become a private company once more after going public in 2021.

The company would announced in January 2025 it had commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware to facilitate a sale process to maximize the value of its business. At the time, company officials said stores and its website JOANN.com will be open and continue to serve customers, as well as employees continue to receive pay and benefits.

With its second filing, JOANN Fabrics is 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 to which Gordon Brothers Retail Partners, LLC (“Gordon Brothers”) would serve as the “stalking horse” bidder. The proposed transaction is subject to higher and better offers, among other conditions.

A full list of stores affected by the closure plan is available at joannrestructuring.com.

Gordon Brothers closed its sale agreement with Big Lots earlier this year after Big Lots following its announcement of its remaining stores would begin “going out of business” sales. Part of the agreement included Variety Wholesalers, who partnered with Gordon Brothers for the sales agreement, acquire 200 to 400 Big Lots stores and up to two distribution centers, where the stores will continue under the Big Lots brand. In a filing earlier this month, Gordon Brothers provided a list of 200 locations with leases or contracts designated to be taken over by Variety Wholesalers.

The list included the Tullahoma location at 1806 N. Jackson St., next to Hobby Lobby.

According to the filing, any objections to Variety Wholesalers taking over the locations of any of the 200 stores must be filed with the court by 4 p.m. on Tuesday, Feb. 18.