BROOKFIELD – The lone Joann Fabrics store in Fairfield County is due to close for good as part of a bankruptcy liquidation, the Hudson, Ohio-based chain announced Wednesday, Feb. 12.
The 143 Federal Road location 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.
“After carefully reviewing all available strategic paths to address our ongoing industry, economic and financial challenges, JOANN and its financial stakeholders determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business,” a company statement read.
“As part of the ongoing Chapter 11 process, on Feb. 12, 2025, JOANN filed a motion seeking court authority to begin closing approximately 500 stores across the nation. Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for JOANN.
“JOANN is committed to providing our customers – the sewists, quilters, crocheters, crafters and other creative enthusiasts we have served for more than 80 years – with great service and assortments and to supporting our thousands of Team Members across the nation throughout this process.”
On Jan. 15, Joann interim CEO Michael Prendergast announced the company had started the process of selling substantially all of its assets as part of a bankruptcy filing.
“Since becoming a private company in April, the board and management team have continued to execute on topand bottom-line initiatives to manage costs and drive value,” Prendergast said. “However, the last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step. After carefully reviewing all available strategic paths, we have determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business. We hope that this process enables us to find a path that would allow JOANN to continue operating as a going concern.”
In the Jan. 15 statement, the company said it was seeking court approval to commence a process for the sale of substantially all of its assets under Section 363 of the U.S. Bankruptcy Code pursuant to which Gordon Brothers Retail Partners, LLC would serve as the “stalking horse” bidder.
The proposed transaction is subject to higher and better offers, among other conditions.
