Once-Popular Crafts Store Files for Bankruptcy…Again

In March of 2024, JoAnn Fabrics filed for bankruptcy, just to come out of it a month later as a private company.

When the company emerged from bankruptcy the first time, it announced that it would be closing some underperforming stores across America.

According to TheStreet, JoAnn Fabrics has around 800 locations left in America, even after recently announcing the upcoming closing of about 10 locations.

Less than a year from their first bankruptcy filing, the once-popular mega arts and crafts retailer is back underwater again and has filed for bankruptcy a second time.

According to Fox Business, interim CEO Michael Prendergast said Tuesday (Jan. 14) that the Ohio-based crafts retailer had been dealing with a difficult retail environment.

Here’s where this can benefit you, the consumer. The bankruptcy filing this time is to prepare for selling its assets to Gordon Brothers Retail Partners LLC. That company has already announced that it intends on buying the brand and liquidating all of its store inventory.

We saw this most recently with American Freight Furniture, where they went down and sold everything in all of their stores for a large discount.

This process of bankruptcy and selling, then liquidating the stores takes some time. JoAnn Fabrics says in the meantime, all of its stores will remain open.

Its online store will also continue to operate as usual. The company said employees will still receive all pay and benefits while the process is going on.

You could run to your local JoAnn fabrics now and possibly save, or you can wait until the bankruptcy gets approved and the company gets sold to cash in on liquidation prices of things you might need.