Joann Fabrics, the well-known fabric and craft retailer, has announced the impending closure of all its stores across the United States, marking the end of its long history as a staple for craft enthusiasts. The company’s decision follows its recent Chapter 11 bankruptcy filing for the second time within just one year, leading to severe operational changes.
Based out of Hudson, Ohio, Joann confirmed on Monday through its spokespersons their plans to close approximately 800 locations throughout the country, putting around 19,000 employees out of work. The announcement not only shocked employees and customers but also signaled broader trends affecting the retail sector as it battles mounting debt and rising competition.
Initially, Joann indicated earlier this month it would close about 500 stores. ”We made every possible effort to pursue a more favorable outcome,” the spokesperson stated. The company's leadership, board, advisors, and legal partners expressed deep disappointment over the circumstances leading to the decision. “We deeply appreciate our dedicated Team Members, our customers and communities across the nation for their unwavering support for more than 80 years,” they affirmed.
The rapid shift to closure came after Joann’s assets were sold to GA Group, following a bankruptcy auction on February 21. The new ownership group, which comprises GA Group and Joann’s term lenders, has committed to overseeing the liquidation of store assets and conducting going-out-of-business sales at all locations. Final approval of the liquidation sale is set to take place on Wednesday, February 26, in U.S. Bankruptcy Court for the District of Delaware.
Gift cards will be accepted through February 28, but Joann will no longer accept returns. “Any dates for store closures or changes to the website and app will be communicated as soon as possible,” the company stated on its restructuring site. What’s notable is how the retailer had previously operated 800 stores, and at one point, the surge of DIY projects during the pandemic had boosted sales considerably. Yet, the lofty expectations soon unraveled under the weight of operational challenges and competition, leading to their first bankruptcy filing back on March 2024.
Joann’s first Chapter 11 filing, which concluded shortly after, did not halt its financial troubles. Just under one year later, the company found itself back at the same crossroads as mounting debt left it adrift. After the bankruptcy auction concluded with GA Group as the winning bidder, the plan for closing stores quickly escalated. Scott Carpenter, CEO of GA Group’s Retail Solutions, indicated, “We will help Joann close these stores with empathy, professionalism and efficiency.”
This closure impacts numerous locations across various states, as Joann aims to wrap up operations through liquidation sales spanning from Miami to Northern Kentucky. Specific store locations were initially set to remain open but have now joined the closure list, highlighting the rapid changes within the company.
Among the stores being closed is the Joann store at St. Johns Town Center, which had been part of the community for nearly two decades, indicating the loss of significant retail presence. Other major markets like New Jersey will also see substantial store closures, leading customers to adapt to the quickly dwindling number of available locations.
The retail market is facing turbulence as numerous companies struggle under similar pressures. Coresight Research estimates approximately 15,000 store closures will occur across the U.S. this year, more than double the prior year. Joann’s downfall and subsequent closure is just one example among many well-known retailers who are similarly suffering as brick-and-mortar networks face rapidly changing consumer preferences.
While Joann's troubles highlight specific challenges within the craft sector, they resonate with broader retail trends characterized by changing shopping habits, economic pressures, and the seismic shifts introduced by the pandemic. With such retail closures on the rise, the future of physical stores remains uncertain as companies navigate untested waters.
For many loyal customers who have frequented Joann for crafting supplies, the closure signals the end of an era. The support from dedicated team members and customers echoes through the company’s communications as they offer their gratitude to those who contributed to their legacy. While going-out-of-business sales are expected to attract customers in the coming weeks, the void left known as Joann Fabrics will be felt across crafting communities nationwide.
With the updates from Joann continuing to evolve, many are left pondering what this means for the durability and sustainability of the arts and crafts retail market, especially amid the modern era of shopping.