Lehi Business
AF JOANN Fabric out; liquidation sales begin
Rob Shelton | Lehi Free Press
In a devastating blow to local crafters and DIY enthusiasts, JOANN Fabric and Crafts announced Sunday the closure of all 800 stores nationwide, including the American Fork location in Utah.
The American Fork store, situated in a shopping center that recently lost Big Lots, will begin liquidation sales immediately. The closure marks the second major anchor tenant to vacate the shopping center in recent months, raising concerns about the future viability of the retail complex.
“Following a comprehensive sale process and auction, GA Group together with the Prepetition Term Loan Agent, has been selected as the winning bidder to acquire substantially all of JOANN’s assets,” a company spokesperson stated. “In connection with this agreement, subject to Bankruptcy Court approval of the transaction, the winning bidders plan to begin winding down the Company’s operations and conduct going-out-of-business sales at all store locations.”
The spokesperson added, “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. 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.”
According to JOANN’s customer FAQ, all stores, the company website, and mobile app will remain operational during the liquidation process, which is expected to take “a number of weeks” to complete.
Shoppers should note several important policy changes:
● Gift cards will only be accepted through Feb. 28.
● All personalized discounts and partnerships (including those for Girl Scouts, teachers, military, and healthcare workers) are suspended.
● Returns are no longer being accepted.
● Special pricing will be available as part of the going-out-of-business sales
“During the wind-down process, customers can continue to shop for JOANN’s best-in-class product assortments at our stores nationwide, online at JOANN.com or on the JOANN mobile app,” the company stated.
Retail analyst Neil Saunders attributed JOANN’s demise to increasing competition from online retailers and brick-and-mortar competitors Hobby Lobby and Michaels, according to NPR. The 80-year-old retailer experienced a temporary sales boost during the early pandemic as homebound consumers embraced crafting, but ultimately failed to maintain momentum.
For American Fork residents, the closure represents not only the loss of a major craft supply source but also signals deepening concerns about retail variability on the east side of the city.
