• by Sarah Mahoney  @mahoney_sarah, February 24, 2025

When Joann, the fabric and crafts store, announced that the company was voluntarily entering Chapter 11 last month, there still seemed to be some hope that the Hudson, Ohio-based retailer would somehow survive. Those plans called for the closure of 500 of the retailer’s 800 stores, with the remaining assets moving to an auction.

The winner of the weekend auction? GA Joann Retail Partnership, a GA Group subsidiary, that helps retailers dispose of assets. The new owner will now oversee the total liquidation of Joann’s remaining operations, which is expected to take just a few weeks.

It was the second time Joann had filed for bankruptcy.

“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 said in a statement. “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.”

With 19,000 employees, the company is just one of many retailers that entered the new year on thin ice.

Forever 21 also announced plans to close 200 stores as it contemplates filing for bankruptcy, reports Bloomberg. Like Joann, the company has done so before, shutting hundreds of stores in recent years. Authentic Brands Group owns the company’s intellectual property. And Catalyst Brands, the newly formed joint venture between JC Penney and SPARC, runs Forever 21’s operations. Unless a buyer emerges, it too is likely to move into liquidation.

Party City and Big Lots have also disappeared, with many other leading retailers closing large numbers of stores as they struggle to balance portfolios against changing shopper habits. Those include Walgreens and Red Lobster.