Joann Inc., a longstanding supplier of arts and crafts materials in the United States, has announced plans to close all its retail locations across the country. This decision follows the company’s recent filing for Chapter 11 bankruptcy protection, which occurred just a month prior.

According to a statement released by the 82-year-old company on Sunday, Joann intends to sell its assets to a buyer group. Initially, Joann’s leadership hoped that a new buyer would maintain business operations, but the top bidder is now preparing to initiate liquidation sales at all store locations.

As of January, Joann boasted over 800 retail outlets in the U.S., although many of these stores shut their doors last month. At that time, the company had an inventory valued at $538.3 million and employed approximately 19,000 individuals nationwide, except in Hawaii.

However, the company faced significant financial challenges, reporting total debts of $615.7 million during its Chapter 11 filing, which included more than $133 million owed to suppliers. The operational costs for maintaining its numerous locations were considerable, with monthly rent alone reaching $26 million.

MAJOR CRAFTS RETAILER FILES FOR BANKRUPTCY

Customers enter a Joann Store LLC location in Peoria, Illinois, on Wednesday, Sept. 19, 2018. (Daniel Acker/Bloomberg via Getty Images / Getty Images)

Recent court filings indicate that Joann has been grappling with challenges from suppliers, affecting the availability of essential products. Additionally, the delivery of yarn and other sewing supplies has become erratic, jeopardizing Joann’s reputation as a comprehensive destination for craft enthusiasts.

In January, the chain began the process of shutting down approximately 500 stores. A spokesperson stated that these closures were a necessary measure to optimize the company’s value and sustainability.

LEASES FOR NEARLY 700 PARTY CITY LOCATIONS TO BE AUCTIONED OFF

Shopping carts positioned in the front window of a Jo-Ann Store LLC location in Moline, Illinois, on Wednesday, Sept. 19, 2018. (Daniel Acker/Bloomberg via Getty Images / Getty Images)

“A thorough assessment of store performance and future strategic alignment guided our decision on which stores should continue operating normally,” the spokesperson elaborated. “Adjusting our store footprint is a vital component of our strategy to create a sustainable future for Joann.”

This recent closure announcement occurs during a tough period for Joann. In March 2024, the company filed for Chapter 11 bankruptcy for the first time in its long history, although it initially managed to keep all 800 stores open.

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A customer enters a Joann store in El Cerrito, California, on Wednesday, Jan. 8, 2025. (David Paul Morris/Bloomberg / Getty Images)

Customers holding Joann gift cards can use them until February 28. The process of closing the remaining Joann stores will be gradual, aimed at minimizing disruptions for vendors, customers, and staff.

Contributions to this report were made by Reuters and Danielle Genoverse from FOX Business.