| Metric | Details |
|---|---|
| Entity Status | Liquidated: Second Chapter 11 January 2025 |
| First Chapter 11 | March 18, 2024 (prepackaged; emerged as a private company at the end of April 2024) |
| Second Chapter 11 | January 15, 2025 (liquidation) |
| All Stores Closed | Going-out-of-business sales at all store locations in 2025 (more than 800 stores as of April 2024) |
| Store Status | All JOANN brick-and-mortar locations closed by the end of May 2025 (Cricut, Inc. Form 10-K for 2025) |
| Credit Ratings | No current agency rating in our ratings database; company liquidated in 2025 |
| Investment Grade Status | No Longer Operating (Not Rated) |
| Former Average Store Size | About 22,500 SF average (833 stores as of January 28, 2023, Form 10-K) |
JOANN is no longer operating. JOANN is no longer operating; our ratings database holds no current verified rating for it. Ratings checked September 27, 2026. See the investment grade credit tenant ratings table.
What Happened to Joann?
Joann Inc., the fabric and crafts retailer operating under the JOANN brand, filed for Chapter 11 twice in less than a year. The company filed a prepackaged Chapter 11 on March 18, 2024 and emerged as a private company at the end of April 2024, about six weeks later, with roughly $500 million of debt eliminated and no store closures. However, it filed for Chapter 11 again less than nine months after emerging.
On January 15, 2025, Joann filed Chapter 11 for the second time. This filing moved to liquidation: GA Joann Retail Partnership, LLC acquired and liquidated Joann’s retail assets (BRC Group Holdings, Inc. Form 10-Q for the quarter ended June 30, 2026), and all JOANN brick-and-mortar locations closed by the end of May 2025 (Cricut, Inc. Form 10-K for 2025). The outcome shows that a non-investment grade retail tenant can fail again after a first restructuring: the first case reduced Joann’s funded debt, but the company filed again less than nine months after emerging.
The Joann Credit Warning Story
Joann’s competitors included Hobby Lobby and Michaels, which was acquired in April 2021 with equity from investment funds affiliated with Apollo. Joann reported a net loss of $200.6 million for fiscal 2023, compared with net income of $56.7 million in fiscal 2022 (Form 10-K).
Former Joann Properties: Re-Tenanting Considerations
Joann stores averaged about 22,500 square feet and were generally located in strip and big box shopping centers (Form 10-K for fiscal 2023). A box of that size can suit a range of replacement users, including specialty retail, fitness concepts, healthcare clinics, beauty and personal services, food and beverage, and discount concepts, though some users need the space divided and re-leasing time varies by market.
Key Re-Tenanting Options for Former Joann Spaces
| Replacement Category | Format Fit | Credit Quality |
|---|---|---|
| Hobby Lobby (direct craft replacement) | Confirm current size requirements | Not in our ratings database |
| Five Below (value variety) | New store model about 9,500 SF (Form 10-K), so a former Joann box may need dividing | No verified agency rating on file (public, NASDAQ: FIVE) |
| Planet Fitness (fitness) | Form 10-K for 2025 gives about 20,000 SF as the usual club size | no verified rating |
| Urgent care / medical | Size needs vary; a large box may need dividing | Varies by operator |
| Beauty / personal services | Good: divisible into multiple units | Varies |
| Discount grocer (Aldi, Lidl) | Depends on local grocery demand | Varies; confirm credit |
Did Joann go out of business?
Yes. Joann filed Chapter 11 for the second time on January 15, 2025, announced in February 2025 that it would liquidate, and closed all of its brick-and-mortar locations by the end of May 2025 (Cricut, Inc. Form 10-K for 2025).
What happened to NNN investors who owned Joann properties?
In a Chapter 11 case, the debtor can, with court approval, assume a lease and assign it to another tenant, or reject it (11 U.S.C. 365(a) and (f)). A landlord whose lease is rejected generally holds an unsecured claim for rejection damages, which 11 U.S.C. 502(b)(6) caps, and gets the space back; the case docket shows what happened to a specific Joann lease. This is general information, not legal advice. Former Joann boxes, which averaged about 22,500 SF, can be re-leased to fitness, healthcare, value retail, and beauty concepts, depending on the market and whether the space is divided.
Related NNN Tenants
- Barnes & Noble
- Bed Bath & Beyond
- Best Buy
- Big Lots
- BJ’s Wholesale Club
- Burlington
- Costco
- Dick’s Sporting Goods
- Dillard’s
- DSW
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- Five Below
- Floor & Decor
- Harbor Freight
- Home Depot
- JCPenney
- Kirkland’s
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- Lifetime Fitness
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- Macy’s
- Michaels
- Nordstrom
- Office Depot / OfficeMax
- Old Navy / Gap
- Party City
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- Ross Dress For Less
- Staples
- The Container Store
- TJ Maxx / HomeGoods / Marshalls
- Tractor Supply Co.
- Ulta Beauty
- Ollie’s Bargain Outlet
- Target
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Own a Former Joann Fabric & Crafts Property?
When a tenant closes stores or stops operating, the value of the property depends on the current lease, any replacement tenant and how easily the building can be re-leased. We can review the lease and the replacement tenant’s credit, prepare an opinion of value from current listings and recent sales, and help you sell or find a replacement property in a 1031 exchange.
