Joann Fabrics and Crafts, the once-popular chain known for satisfying the needs of crafters and fabric enthusiasts, is set to close all its stores nationwide following its decision to file for Chapter 11 bankruptcy protection for the second time this year. The news has sent shockwaves through the crafting community, which has relied on the retailer for decades.
The announcement of store closures, which includes over 800 locations, stems from persistent financial difficulties. Sluggish consumer demand and significant inventory shortages have been cited as the main reasons for the company's downfall. Joann’s leadership and board, acknowledging their struggles, stated, "Joann leadership, our board, advisors, and legal partners made every possible effort to pursue a more favorable outcome to keep the company in business."
Founded during World War II as the Cleveland Fabric Shop, the company has been part of Americana for over 80 years. At its peak, Joann was the largest fabric retailer in the United States, beloved by many crafters. Yet, the retail giant hit turbulence amid changing consumer behaviors post-pandemic. Although Joann experienced renewed interest during the stay-at-home orders brought about by COVID-19, sales rapidly declined afterward.
Joann's troubles began to escalate after its initial bankruptcy filing back in March 2024. Although the company managed to emerge from bankruptcy, it struggled to maintain profitability. By January of this year, the company announced it would again seek Chapter 11 protection, which led to the decision to close two-thirds of its locations. It soon escalated to all 800 stores after failing to find someone willing to keep them open.
According to Joann, the GA Group, which has been tapped as the winning bidder, plans to start wind-down operations and conduct going-out-of-business sales across the country. They aim to minimize the impact on all stakeholders involved. The upcoming sales are set to begin immediately following Bankruptcy Court approval of the asset acquisition, which is expected soon.
Residents from across various states are feeling the impact of these closures. For example, several stores across Oklahoma are slated to shut down, including locations in Oklahoma City and Tulsa. The move affects not just consumers but also local artisans and small business owners who depended on Joann for materials.
Crafting communities have expressed sadness and disappointment over the move, with one local business owner commenting on how integral Joann has been to their operations. It’s not merely about losing access to crafting materials; it’s about losing the heartbeat of the community where people gathered for workshops and classes.
The fabric and craft sector is witnessing changes beyond Joann's closures. Other retailers, such as Party City and Big Lots, have similarly announced going-out-of-business plans recently, highlighting broader challenges within the retail sector.
Joann's decision to close all its stores marks the end of an influential era, but it is also indicative of the changing retail environment where consumer habits are rapidly shifting. The company had attempted to adapt by adjusting its operations, yet the persistent issues with supply and demand proved insurmountable.
Management expressed gratitude to its loyal customer base and acknowledged the support they've received over the years. "We deeply appreciate our dedicated team members, our customers, and communities across the nation for their unwavering support for more than 80 years," said the company spokesperson. For many, the closure of Joann will mean the loss of not just shopping services but also nostalgic memories of creativity and community.
The closure timing poses immediate inconveniences for many. Local artisans who have relied on Joann for their supplies now face uncertainty on where to buy materials, leading to potential delays and increased costs as they find alternative suppliers.
Looking forward, the crafting community will need to adapt to the retail changes. Many customers have mentioned they will do their best to find other resources or will resort to online shopping, but few believe they can match Joann's diverse selection and competitive prices.
For now, Joann's closure serves as yet another poignant reminder of how rapidly the retail world can shift and how personal even store closures can be for local communities and businesses intertwined with the brand.