JoAnn Fabrics Will Close All Locations, Including Billings Store

Only two weeks ago, we told you that JoAnn Fabrics would be closing more than 500 stores nationwide but that the Billings location would be spared from closing. However, that has changed.

Recent developments have delivered devastating news - not only is the store in Billings now closing, but all Joann Fabrics locations are closing their doors for good as the company will be going out of business.

JoAnn Fabrics Completely Going Out of Business

In a surprising turn of events, the more than 80-year-old fabric and crafts retailer, Joann Fabrics, has announced its decision to close all remaining stores nationwide after filing for Chapter 11 bankruptcy protection for the second time.

SEE ALSO: Sewing Center West in Billings To Close After 40 Years

Despite initially planning to close 500 of its stores and keep around 300 open, Joann Fabrics failed to secure a buyer willing to keep its stores operational, leading to the unfortunate decision to end all operations which will close 800 stores and leave 19,000 people nationwide out of work.

Change in Ownership and Going-Out-of-Business Sales

Joann Fabrics expressed its efforts to explore all possible options that would have enabled the company to continue its business operations. However, due to persistent challenges in the form of weak sales and mounting financial difficulties, the company found itself in an unsustainable position, resulting in the difficult choice to close all stores permanently.

The financial services company GA Group, in collaboration with Joann Fabrics' lenders, has taken over the retailer's assets as the new owners initiate going-out-of-business sales nationwide.

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What To Do if You Have a JoAnn Fabrics Gift Card

Customers are advised that any gift cards they have will need to be used quickly as the gift cards will only be valid through this Friday, February 28. Additionally, discounts on fabrics, yarns, sewing supplies, machines, and home decor items are already in effect on Joann Fabrics' website as part of the ongoing clearance sales.