After filing for bankruptcy, Joann's has been acquired by a new ownership group that plans to liquidate all store locations, reversing an earlier plan to close only 500 stores. The GA Group, the winning bidder, aims to manage the closures with consideration for the retailer's 19,000 employees, including job fairs and time off for interviews.

Joann, the fabric and craft retailer, is set to close all of its store locations after a new ownership group, led by the GA Group, won the bid for the company's remaining assets. This decision comes after a previous announcement to close "approximately 500" stores.

Following its second Chapter 11 bankruptcy filing within a year, Joann was auctioned off, with the GA Group and Joann's term lenders emerging as the winning bidders on Saturday. In conjunction with the new owners, the company announced it would cease operations at all stores after conducting going-out-of-business sales.

Auction Approval and Previous Closures

The auction results are expected to receive formal approval during a hearing on Wednesday in the U.S. Bankruptcy Court for the District of Delaware. Prior to this, Joann had announced the closure of roughly 500 of its over 800 stores across the U.S.

"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 company stated.

The company also expressed its commitment to ensuring an orderly wind-down of operations and appreciation for its team members, customers, and communities.

GA Group's Plans

Scott Carpenter, CEO of GA Group's Retail Solutions and Wholesale & Industrial Solutions teams, indicated that most of the closing Joann stores would remain open until the end of May. The GA Group plans to implement a "multimillion-dollar retention plan" for Joann's approximately 19,000 employees, which includes organizing job fairs and providing time off for job interviews.

"We will help (Joann) close these stores with empathy, professionalism, and efficiency," Carpenter stated.

GA Group's History with Joann

The GA Group has a longstanding relationship with Joann, including assisting in the acquisition of House of Fabrics in the late 1990s and supporting the retailer's store expansion from 2006 to 2016. During the recent auction, GA Joann Retail Partnership competed with stalking horse bidder Gordon Brothers Retail Partners for ownership of the retailer.

Going-Out-of-Business Sales Details

Joann's going-out-of-business sales began at closing locations on Saturday, Feb. 15, and are expected to continue for months.

• Only inventory available on-site at those stores will be part of the closing sales.
• Initial base discounts ranged between 10-20%, with some Christmas items discounted as high as 75%.
• The retailer is not accepting gift cards.
• Discounts for Girl Scouts, teachers, military, and healthcare are paused.
• Item returns are not being accepted at the closing locations.

The closure marks the end of an era for the fabric and craft retailer, impacting employees and communities nationwide.