Joann Fabrics says it will close all its stores, liquidate remaining merchandise

Joann Fabric closing all stores

After more than 80 years in business, Joann Fabrics says it is closing all of its stores and will liquidate its remaining stock.

HOUSTON - After more than 80 years in business, Joann Fabrics says it is closing all its stores, and liquidating its remaining stock. 

Joann Fabrics to close all stores, liquidate remaining stock

What we know:

In January, the company filed for Chapter 11 bankruptcy for the second time in a year, and announced in early February that it would close hundreds of stores to reduce its size to something more manageable. Ultimately, the company says the only financial lifeline came from a company that specializes in liquidation.

The challenge seems to be a function of being overextended, with more than 800 locations and sales volume that could not keep up, leaving the Ohio-based chains hundreds of millions of dollars in the hole. In a statement, the company says, 

"JOANN leadership... made every possible effort to pursue a more favorable outcome that would keep the company in business. We deeply appreciate our dedicated Team Members, our customers and communities across the nation for their unwavering support for more than 80 years."

The development follows the recent closures of the 99 Cents Only chain, Big Lots, and other chains trimming their store counts. At the same time, online sales continue to offer products that are just a click away, leaving the traditional retail experience, that may be less-pleasant or convenient, an endangered species.

What they're saying:

"We're also guilty of causing the demise, because we no longer shop in those stores and we change our behavior to shop more, and more, online," says University of Houston retail expert Paul Galvani, "Once that happens, it is very difficult, almost impossible to switch back."