The 82-year-old Hudson, Ohio-based nationwide fabrics store Joann will close all of its 800 locations after a “stalking horse” bidder at a bankruptcy auction decided to wind down operations, according to a company statement.
The 143 Federal Road location in Brookfield is among 10 in Connecticut that will close in the near future, according to a statement from the company. The others are located in Clinton, Manchester, Newington, Enfield, Southington, Hamden, Milford, Torrington, and Norwich.
On Tuesday, Feb. 25 – the date of the sale objection deadline for winning bids – GA Group together with the prepetition term loan agent, was selected as having the winning bid to acquire substantially all of JOANN’s assets. Subject to Bankruptcy Court approval of the transaction, the winning bidders plan to wind-down the company’s operations and conduct going-out-of-business sales at all store locations, according to Kroll Restructuring Administration.
Joann stores, Joann.com and the mobile app will remain open and operating as the going-out-of-business sales are conducted.
“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. “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.”
Joann was founded as the Cleveland Fabric Shop by German immigrants during World War II. At one point, it was the largest fabrics retailer in the U.S.
Additional information regarding JOANN’s financial restructuring is available at JOANNRestructuring.com.
