Joann Fabrics to Close All Remaining Locations

News Summary

Joann Fabrics will be closing all its stores after a second bankruptcy filing. Burlington Stores will take over 45 leases as part of its expansion strategy. Joann has already shut down hundreds of locations and will soon offer going-out-of-business sales. This major retail shift highlights challenges in the craft industry, allowing other retailers to seize available spaces. Burlington aims to enhance its growth while competitors like Joann retreat from the market.

Burlington, New Jersey – Joann Fabrics will close all of its remaining locations in the coming weeks after filing for bankruptcy for the second time in less than a year. In a significant development, Burlington Stores, formerly known as Burlington Coat Factory, will assume the leases for 45 Joann store locations across the United States, including three in Georgia. This strategic move is part of Burlington’s expansion plan as it aims to open 100 new stores in 2025, signaling a stronger retail presence amid a landscape where many competitors are downsizing.

Joann Fabrics, a popular craft retailer, had already shuttered hundreds of stores in April and is set to close over 500 locations by the end of May. The company first filed for Chapter 11 bankruptcy in March 2024 and followed with a second filing in January 2025. In a warning issued earlier, Joann indicated that it could face complete closure if a more favorable buyout offer wasn’t secured.

GA Joann Retail Partnership, a consortium consisting of a financial services company and Joann’s term lenders, acquired the company with a plan to inject approximately $132 million in new financing to help address estimated debts totaling $505 million. Following this acquisition, Joann announced it would begin going-out-of-business sales at all locations.

As for Burlington’s specific plans in Georgia, the company has already taken over a Joann location on Peachtree Road as of May 1, with additional stores in Atlanta and Macon set to transition by June 1. Prior to its bankruptcy, Joann operated nearly 800 stores across the country, including 18 cities in Georgia.

The transition of leases from Joann to Burlington is not guaranteed, as court documents suggest potential objections from interested parties could arise, which may affect the finalization of the lease transfers. However, this rapid closure of Joann locations is creating opportunities for other retailers looking to occupy retail spaces, as many available leases come with low or no cure costs.

In addition to Burlington, other retailers such as Hobby Lobby and Boot Barn are also eyeing former Joann locations to extend their market reach, indicating a shift in the retail landscape following Joann’s downturn.

Currently, Burlington operates 1,108 stores across 46 states, Washington D.C., and Puerto Rico, with aspirations of expanding to 2,000 locations in the long term. The company is leveraging this challenging market environment by proactively taking on leases of closed locations, aiming to enhance its growth strategy while competitors like Joann are retreating from the marketplace.

This situation underscores the continuing shifts within the retail sector, as companies adapt to changing consumer demands and financial realities. The fate of Joann Fabrics, once a prominent player in the craft retail industry, reflects broader patterns of challenges faced by many brick-and-mortar retailers in today’s economy.

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