JoAnn closes Chesterfield store in Chapter 11 bankruptcy
TL;DR: National fabric and craft retailer JoAnn filed for Chapter 11 bankruptcy in January 2026 and liquidated all stores, including its Chesterfield location, eliminating a major shopping destination for local crafters.
Quick facts
- Who: JoAnn, a national fabric and crafts retailer
- What: Filed Chapter 11 bankruptcy and closed all 851 stores nationwide
- When: Filed January 15, 2026; store closures completed by May 30, 2026
- Where: Chesterfield County (125 Perimeter Drive, Midlothian, Virginia)
The story
JoAnn, the nation's largest fabric retailer, filed for Chapter 11 bankruptcy protection on January 15, 2026, in U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 filing marked the company's second bankruptcy in less than a year, following an emergence from its previous bankruptcy restructuring in April 2025. This time, however, the company chose liquidation over reorganization, announcing that all 851 stores nationwide would close permanently.
The Chesterfield County store at 125 Perimeter Drive in Midlothian, located in the Westchester Commons shopping center, was among the locations shuttered during the liquidation process. The store had been a neighborhood destination for residents seeking fabric, yarn, embroidery supplies, and various craft materials. The closure removed a specialized retail option for local sewers, quilters, knitters, and hobbyists who previously shopped there.
JoAnn entered bankruptcy with approximately $615.7 million in total funded debt, including substantial obligations under its asset-based lending facility, FILO term loan, and other financing arrangements. The company's troubles reflected broader challenges facing traditional retail, including weak consumer demand in the post-pandemic period and the loss of pandemic-era rent concessions that had previously reduced operating costs. Going-out-of-business sales began immediately, with liquidation sales offering discounts of up to 90 percent off merchandise. By May 30, 2026, all remaining JoAnn locations, including the Chesterfield store, had permanently closed.
The liquidation brought an end to JoAnn's 83 years of retail operations. Founded in 1943 by German immigrant families in Cleveland, the company had grown to become a dominant player in the fabric and craft retail market, holding an estimated 6 percent share of the broader $29 billion retail fabric and craft-supplies industry at its peak. While JoAnn continues to operate through its online platform at Joann.com, the closure of physical retail locations eliminated a critical touchstone for customers who preferred in-person shopping, material handling, and expert advice.
Key players
- JoAnn Stores, Inc. (Joann): National fabric and craft supplies retailer filing for bankruptcy and liquidating all locations
- GA Joann Retail Partnership, LLC: Purchaser selected after competitive auction to acquire JoAnn assets
Key dates
- 2026-01-15: JoAnn filed for Chapter 11 bankruptcy protection
- 2026-02-21: Competitive bankruptcy auction held for JoAnn assets
- 2026-05-30: All remaining JoAnn stores, including Chesterfield location, permanently closed
The case for
The liquidation provided immediate clarity to customers, vendors, and employees after prolonged uncertainty. Going-out-of-business sales offered steep discounts (up to 90 percent) that allowed loyal customers to stock up on materials at reduced prices. From a financial perspective, liquidation allowed creditors to recover value more quickly than a lengthy reorganization would have, and it freed the company from ongoing store leases and operational costs that were unsustainable given current demand.
The case against
The closure eliminated a specialized retail destination that served crafters, sewers, quilters, and hobbyists who valued in-person shopping, hands-on material selection, and staff expertise. For customers without reliable internet access or those who prefer tangible shopping experiences, the loss of physical locations means reliance on online ordering with shipping costs and potential delays. The closure also removed local jobs and left retail real estate vacant in shopping centers like Westchester Commons.
Why it matters: The closure of the Chesterfield JoAnn removes a major shopping destination for local residents interested in fabric, yarn, and crafting supplies, forcing them to shop online or travel to remaining craft retailers in the region. The broader liquidation of all JoAnn stores reflects how consumer shopping patterns and post-pandemic economics can force major retailers to exit markets, reshaping local retail landscapes.
Places
- Westchester Commons (Midlothian)+Chesterfield+VA)
- Chesterfield County
Development timeline
- 2025-04-25JoAnn emerged from previous bankruptcy as private company: Company emerged from restructuring bankruptcy after filing in March 2024 [[source]](https://www.retaildive.com/news/joann-chapter-11-bankruptcy-exit-plan-approved/714437/)
- 2026-01-15JoAnn filed for second Chapter 11 bankruptcy: Filing in U.S. Bankruptcy Court for the District of Delaware with $615.7 million in total funded debt [[source]](https://chapter11cases.com/blogs/news/joann-files-liquidation-plan-in-second-bankruptcy-case)
- 2026-01-16First Day Hearing held before Judge Craig T. Goldblatt: Bankruptcy court hearing on Debtors' First Day Motions [[source]](https://cases.ra.kroll.com/Joann2025/KrollRestructuringAdministration)
- 2026-02-21Competitive auction held for company assets: GA Joann Retail Partnership, LLC selected as purchaser after auction on February 21-22, 2026 [[source]](https://chapter11cases.com/blogs/news/joann-files-liquidation-plan-in-second-bankruptcy-case)
- 2026-05-30Final store closures completed nationwide: All 851 JoAnn locations, including Chesterfield County store at 125 Perimeter Drive, permanently closed. Going-out-of-business liquidation sales offered discounts up to 90 percent. [[source]](https://www.foxbusiness.com/retail/crafts-retailer-joann-closing-all-u-s-stores-one-month-filing-chapter-11-bankruptcy)
Related links
Read the original at Richmond BizSense →
Sources
- Retail Dive: Joann files for bankruptcy for the second time in a year
- Fox Business: Crafts retailer Joann closing down all U.S. stores, one month after filing Chapter 11 bankruptcy
- Kroll Restructuring Administration: JOANN Inc. Bankruptcy Case
- Stretto: JOANN Files Liquidation Plan in Second Bankruptcy Case
- Yelp: JOANN FABRIC AND CRAFTS (Midlothian, Virginia) - Closed June 2026
- FundingUniverse: History of Jo-Ann Stores, Inc.
- Wikipedia: Jo-Ann Stores