The bankrupt craft retailer Jo-Ann announced it plans to close all its stores.
On Feb. 12, the company stated it would close 500 stores. In a new statement, the company spelled out its route to shutting down its entire 800-store chain.
“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 Jo-Ann’s assets,” said the company 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.”
“Jo-Ann 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 statement added. “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.”
Jo-Ann traces its roots to 1943 when three pairs of German immigrant couples opened the Cleveland Fabric Shop in Cleveland, Ohio. The company changed its name to Jo-Ann Fabrics in 1963, and in 1969 it became a publicly held corporation traded on the American Stock Exchange as Fabri-Centers of America Inc. The company blamed rising inflation and the disruptions created by the Covid-19 pandemic for its current financial difficulties.
Photo by Coolcaesar / Wikimedia Commons
