Joann Fabrics, a prominent name in the fabric and crafts retail industry, has announced the closure of all its remaining U.S. stores. This decision comes after the company’s second Chapter 11 bankruptcy filing within a year, marking the end of an era for the 82-year-old retailer.
Historical Overview of Joann Fabrics
Founded in 1943 by German immigrants in Ohio, Joann Fabrics grew to become a leading destination for sewing and crafting enthusiasts. Over the decades, the company expanded its footprint to approximately 800 stores nationwide, offering a vast selection of fabrics, sewing supplies, and crafting materials. Despite its longstanding presence, Joann faced significant financial challenges in recent years, leading to its initial bankruptcy filing in March 2024. The company aimed to reduce its $1 billion debt by half during this period.
Financial Struggles and Bankruptcy Filings
The retail landscape has undergone substantial changes, with increased competition from online platforms and shifts in consumer behavior. Joann’s financial woes intensified, leading to a second Chapter 11 bankruptcy filing in January 2025. The company cited continued declining sales and inventory issues as primary factors for this decision. Initially, Joann planned to close approximately 500 underperforming stores to “right-size” its operations.
Complete Liquidation and Store Closures
Despite efforts to restructure and find potential buyers, Joann Fabrics announced in February 2025 that it would proceed with the closure of all its remaining 300 stores. The company’s assets are set to be acquired by the GA Group, a private equity firm specializing in retail liquidations. Going-out-of-business sales have commenced, with customers encouraged to take advantage of discounts both in-store and online. Gift cards will be accepted until February 28, 2025.
Impact on Employees and Communities
The closure of Joann Fabrics stores will significantly impact employees, customers, and the communities that have supported the retailer for decades. The company employed approximately 19,000 individuals across 49 states. While specific details regarding severance or assistance programs have not been disclosed, Joann has expressed gratitude to its employees and customers for their unwavering support over the years.
Customer Reactions and Future Alternatives
The announcement has elicited strong reactions from loyal customers, many of whom have relied on Joann for their crafting and sewing needs. Social media platforms are abuzz with sentiments of loss and disappointment. As Joann Fabrics shutters its doors, customers are exploring alternative retailers such as Michaels, Hobby Lobby, and online marketplaces to fulfill their crafting requirements.
Conclusion
The closure of Joann Fabrics signifies a notable shift in the retail fabric and crafts industry. As the company winds down its operations, both employees and customers are left to navigate the changes and seek new avenues to continue their crafting passions.
