Joann has announced intentions to close all of its fabric and craft stores following a bankruptcy filing in January.

In a statement issued on Sunday, the business stated that GA Group, along with the Prepetition Term Loan Agent, was selected as the winning bidder to purchase practically all of Joann’s assets.

As part of this transaction, which is pending Bankruptcy Court approval, the new owners aim to cease the company’s operations and commence going-out-of-business sales at all Joann shop locations.

“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,” according to the statement. “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.”

The corporation also thanked its employees and faithful customers, stating, “We deeply appreciate our dedicated team members, our customers, and communities across the nation for their unwavering support for more than 80 years.”

The announcement comes after Joann’s recent court move to shutter around 500 outlets as part of its bankruptcy proceedings.

In a statement to ABC News at the time, the firm stated, “Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann.”

Despite filing for voluntary Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware last month, Joann originally told consumers that its stores and online would stay open and that employees would continue to get paid and receive benefits.

Joann’s closures are part of a rising trend among merchants trying to respond to swings in consumer purchasing. With large companies like Kohl’s and Macy’s also shrinking, Coresight Research anticipates around 15,000 store closures across multiple sectors in 2025, more than double the amount from the previous year.