Burlington Taking 45 Store Leases From Joann Following Bankruptcy

Off-price department store Burlington is set to take over 45 store leases across the U.S. from Joann after the crafts and fabrics retailer filed for bankruptcy for a second time in January.

Burlington will assume some of the leases, which include stores in states such as California, Texas and New York, as early as this month, according to a Monday court filing with the U.S. Bankruptcy Court for the District of Delaware.

New York locations Burlington will take over include stores in Amherst, Jericho, Elmsford, East Syracuse and Florida, N.Y., as well as one in New York City at 535 Fifth Avenue, the filing shows.

The proposed cure amounts, which are monetary payments necessary to bring a contract or lease back up to date, range from $0 to $58,234, according to the filing.

Arts and crafts chain Hobby Lobby and Western-themed retailer Boot Barn will also take over some of Joann’s old leases in states including Florida, Missouri and Georgia, the filing shows.

Burlington declined to comment, while spokespeople for Joann, Hobby Lobby and Boot Barn did not immediately respond to requests for comment.

News of the leases being taken over comes after Joann filed for Chapter 11 bankruptcy for the second time in January and announced plans to close about 500 of its stores across the country, representing more than half of its footprint, the Associated Press reported. Joann claimed the bankruptcy was due to “operational challenges.”

And Burlington, which saw its net sales rise 4.8 percent year-over-year to almost $3.3 billion during the fourth quarter of 2024, has plenty of options for space to take over following other major retail bankruptcies from last year, including Party City and Big Lots, Bisnow reported.

Retail vacancies in the country are currently between 5 and 6 percent, according to Bisnow.

Isabelle Durso can be reached at idurso@commercialobserver.com.