Bankruptcies and liquidation
In September 2023, Jo-Ann announced it would lay off an unspecified number of administrative employees.[30] In October 2023, Fitch Ratings and CreditRiskMonitor reported that Joann was nearing a potential Chapter 11 bankruptcy filing.[31] That month, Joann was handed a delisting notice from Nasdaq as its stock share price fell below $1 per share that stated that if Joann was unable to get its shares up to $1 or above, its stock would be delisted from the Nasdaq.[32]
Jo-Ann filed for Chapter 11 bankruptcy protection on March 18, 2024.[33] The company planned to cut over $500 million in debt and restructure into a privately held company. It planned to complete its filing by late April with no employees or stores affected.[34] Nasdaq halted the trading of the company's stock on March 28, and on April 9, Jo-Ann was formally delisted from the exchange.[35][36] The company's reorganization plan was approved by a federal judge on April 25, and Jo-Ann emerged from bankruptcy as a private company.[37]
On January 15, 2025, Joann filed for Chapter 11 bankruptcy protection for the second time in less than a year.[38] The company cited continued declining sales as a contribution to its second filing. Stores were expected to remain open throughout the procedure as the company attempted to shed its debt by $500 million.[39][40]
On February 12, 2025, Joann announced the closure of 500 of its remaining 800 locations, in an effort to "right-size" the company's footprint.[41] 61 of the locations slated for closure were in California, while Florida, Michigan, Ohio, and Pennsylvania each saw more than 30 Jo-Ann locations close.[42] On February 24, 2025, it was announced that Joann would liquidate the remaining 300 locations after failing to find a buyer. Its assets were sold to GA Group, a private equity firm.[43] The last Jo-Ann stores closed on May 30, 2025.[1]
On June 5, 2025, a few days after the last store closed its doors, it was announced that arts and crafts retailer Michaels had acquired Joann's intellectual property and private labels, but none of its physical stores. Michaels itself has plans to expand its selection of products by introducing Joann's private labels to physical stores and online within the coming months. An increase in fabric searches on Michaels' website prompted the company to move forward with this decision.[44][45]
