Mold Remediation in Hudson, OH

HUDSON, Ohio -- Following its second bankruptcy filing in less than a year, all Joann store locations are set to close, pending court approval.

The move comes after GA Group and lenders were selected as the winning bidders to acquire practically all of Joann’s assets, the company said in an statement to its customers.

The buyers beat out Gordon Brothers Retail Partners LLC, who recently acquired Big Lots, in a public auction process, as part of the Delaware bankruptcy case.

Once the court approves the transaction, the winning bidders plan to immediately begin “winding down” the company’s operations and conduct going-out-of-business sales at all of its locations. No specific dates were available. This comes nearly two weeks after the store announced it was closing 500 stores nationally, 33 of which were located in Ohio.

As of Tuesday, no new paperwork has been submitted to the Ohio Department of Jobs and Family Services regarding layoffs at the fabric and craft retailer’s corporate headquarters in Hudson. In January, the company said up to 661 jobs at its corporate offices were in jeopardy, along with 359 positions at its Hudson distribution center.

In the short term, Joann stores, along with Joann.com and its mobile app, will remain open to hold going-out-of-business sales. The company said it would communicate changes as soon as possible.

A spokesperson said that Joann’s leadership, board, advisors and legal partners “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 spokesperson said in a statement.

GA Group’s website said it provides retail liquidation services and real estate solutions, among other advisory services, like “helping retailers maximize value.”

Some of its clients include bebe, Bed Bath & Beyond, JCPenney, Nordstrom, New York & Company, Payless and Toys R Us. Since 2019, it has conducted more than 7,900 store closures.

Cleveland.com reached out to GA Group for comment.

Joann will continue accepting gift cards through Feb. 28. At the 500-some stores that were already conducting closing sales, including most in Northeast Ohio, returns will no longer be accepted starting March 2, according to court documents. The company has also paused its personalized discounts, like the ones for Girl Scouts, teachers, military members and healthcare workers.

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The future seems uncertain for Joann stores. Recently, the beleaguered fabric and crafts store announced it would shutter 500 stores nationwide as it goes through its second bankruptcy proceeding in less than a year.

Locally, the impact has the potential to be more acute: Joann Fabric and Craft Stores is headquartered in Hudson, a city with around 23,000 people.

Hudson officials, in a statement sent last week, stated that Joann "has been an important member of our business community for many years and has made a positive impact on our city."

"We reached out to the company to offer our help and support as they go through the bankruptcy process," stated city officials. "We are also working with their landlord to determine what could be next for the site should Joann exit, as our community-led comprehensive plan identified this corridor as a focus for redevelopment over the next decade."

However, should Joann wind up closing for good, the city's financial future should remain solid, city officials stated.

"The city of Hudson is in very sound financial shape, and we believe that, due to our conservative budgeting, we can weather any impact this will have on our revenues," city officials stated.

According to Hudson's website, the city's 2024 revenue was $95.4 million, with 36% coming from income taxes and 7% coming from property taxes.

Joann, which has had a presence in the southern part of Hudson's Darrow Road since 1959, sits on a little more than 45 acres of land, which includes two buildings, a store and the company's corporate offices, according to the Summit County Fiscal Office. Joann pays $377,756 annually in property taxes. The appraised total for the buildings and land is a little less than $13.4 million.

According to the Ohio Department of Education five-year forecast from May 2024, the total revenue forecast for Hudson City Schools in 2025 is nearly $80.8 million. Of this, $56.3 million comes from general property taxes.

"I am estimating our district receives approximately $350,000 in property tax revenue related to the properties currently occupied by Joann," said Phillip D. Butto IV, the school district's treasurer.

Besides the potential municipal impact, Joann also contributed money, supplies and assistance to many organizations and events.

More than 400 million masks crafted with volunteers during pandemic

Joann called on crafters and sewers to create homemade hospital gowns and masks for medical workers during the COVID-19 pandemic. The stores offered free fabric kits so customers could make up to 30 masks. The Joann facility in Hudson and other stores also allowed volunteers to use their classrooms. The finished masks and gowns were returned to the stores, where they were disinfected and donated to area hospitals.

Support for Children's Miracle Network, Akron Children's Hospital and UH Rainbow Babies

Joann also has shown support for the Children's Miracle Network, University Hospitals Rainbow Babies and Akron Children’s Hospital. According to its 2024 impact report, Joann donated $981,000 in a campaign at cash registers.

Akron Children’s Hospital officials stated that the company "has been a good partner to Akron Children’s and other children’s hospitals through its involvement with the Children’s Miracle Network."

"Our patients have benefitted from their direct support of the hospital and indirectly through the friends of the hospital who have received donated fabric and other craft supplies to make Project Linus blankets, Kids Capes of Courage, infant caps, dolls and other items," Akron Children's Hospital stated Friday. "We are saddened by the news of the store closures, the loss of jobs and the impact to employees and their families."

LeBron James Family Foundation: Arts, crafts events from Joann's 'a gamechanger'

Joann and its staff have been instrumental in helping provide fun for the families helped by the LeBron James Family Foundation, said Shannon Shippe, the director of the I Promise Village, in the 2024 impact report published by Joann. The I Promise Village serves as transitional housing for students and families who need immediate shelter.

The company hosted regular craft nights, Shippe said.

“The love, care, and kindness the Joann team has brought to our I Promise families’ lives through arts and crafts is a gamechanger," Shippe said. "Our kids look forward to week after week. These gatherings give them a chance to explore their creativity and channel their passion into positivity and love. Joann also works hard to make holidays and milestones truly special for our family members, donating Mother’s Day baskets to our Village moms and helping their kids create the best homemade gifts for the occasion."

Grant program created for diverse content creators

Joann created its Minority Creative Grant Program, which provided grants to diverse content creators as well as paid teaching opportunities, visibility on Joann platforms, and marketing support as they build their businesses. 2024 marked the third annual Minority Creative Grant Program, which distributed $100,000 in grants, given to 20 Asian American and Pacific Islander business owners.

Joann assisted with Susan G. Komen events

In May 2023, Susan G. Komen awarded Joann the Silver Halo for Best Consumer Donation Initiative at Engage for Good, according to the 2024 impact report. The Halo Awards are North America’s highest honor of corporate social impact initiatives. In addition, the company raised $453,000 for the Susan G. Komen Foundation from customers.

“From supporting our in-store campaigns to participating in Komen races and walks all over the country, Joann Team Members whole-heartedly embrace our partnership to ensure no one has to face breast cancer alone," Paula Schneider, the president and CEO of the Komen foundation, said in the impact report. "Not only is Joann an inspiring oasis for Komen’s creative fundraisers, but their support allows us to provide direct patient services, financial assistance and fund life-saving research that will one day lead to the cures for breast cancer."

Zehra Mehdi-Barlas, the senior director of public relations and communications, said the foundation was "incredibly grateful to Joann Fabrics for their steadfast support since 2018."

"As a valued partner in our mission to end breast cancer, they have played a vital role in helping those in need within our communities," Mehdi-Barlas said. "Their commitment includes serving as a major sponsor of the Northeast Ohio More Than Pink Walk and running an in-store customer donation campaign. We deeply appreciate their dedication and generosity."

Reporter April Helms can be reached at ahelms@thebeaconjournal.com

What about the workers?

With bankruptcy spelling the end of Joann Inc. as a Northeast Ohio fixture, the city of Hudson's Economic Development team is hosting two job fairs in coming weeks for those whose employment is coming to an end,

A March 6 job fair will focus on matching people who play various corporate roles with prospective employers. A March 13 event will do the same for employees in distribution center roles. Employers wishing to participate can sign up at bit.ly/43leAtr.

Both events will take place at the Joann Conference Center at 5455 Darrow Road in Hudson.

The March 6 event runs from 10 a.m. to 2 p.m., with setup beginning at 9 a.m.

On March 13, the fair is tentatively scheduled for noon to 5 p.m., with setup at 11 a.m..

Those with questions or concerns should contact city of Hudson Economic Development Manager Katie Behnke at EconomicDevelopment@hudson.oh.us or 330-342-1893.

In January, Joann filed a Worker Adjustment and Retraining Notification Act (WARN) notice that was received by the Ohio Department of Job and Family Services. The notice included 661 potential layoffs at Joann's Hudson headquarters and was followed by a separate notice increasing that number to 662.

An additional WARN letter filed by Joann later in January, after Chapter 11 bankruptcy proceedings had begun, included notice of 359 possible layoff at Joann's Hudson distribution center.

A judge in the U.S. Bankruptcy Court for the District of Delaware approved the sale of Joann to financial services GA Group and Joann's term lenders on Wednesday.

The Joann auction was held last weekend, and the company has announced the closure of all its stores.

Patrick Williams covers growth and development for the Akron Beacon Journal. He can be reached by email at pwilliams@gannett.com or on X, formerly known as Twitter, @pwilliamsOH.

This story has been corrected to show the date of the second job fair is March 13.