Joann Inc., an 80-year-old fabric and crafts retailer, is shuttering all its U.S. stores after filing for Chapter 11 bankruptcy protection for the second time in a year.
Quick Takes
- Joann Inc. is closing all U.S. stores following a second Chapter 11 bankruptcy filing.
- The company failed to find a buyer to keep stores operational, leading to asset liquidation.
- Going-out-of-business sales are underway at all remaining locations and online.
- Customer gift cards will be honored through February 28.
- Joann faced $615.7 million in debt and struggled with supply chain issues.
End of an Era for American Crafters
The closure of Joann Inc., a staple in the American crafting community for over eight decades, marks the end of an era for DIY enthusiasts and hobbyists across the nation. The company’s decision to shutter all its U.S. locations comes after a tumultuous period of financial struggles and unsuccessful attempts to salvage the business. This development sends shockwaves through the retail sector and raises questions about the future of brick-and-mortar specialty stores in an increasingly digital marketplace.
Joann founded as a Cleveland Fabric Shop during World War II and at one point, was the largest fabrics retailer in U.S is going-out-of-business. Sales to start nationwide at 800 stores! pic.twitter.com/wR7EWDa15L
— KDZA (@KDZAradio) February 25, 2025
Joann’s financial woes became public when the company filed for Chapter 11 bankruptcy protection in March 2024. Despite initial plans to close 500 stores while keeping 300 operational, the retailer failed to secure a buyer to maintain its remaining locations. This setback led to the difficult decision to liquidate all assets and conduct going-out-of-business sales at every store and online.
The Fall of a Retail Giant
Joann’s decline is a stark example of the challenges faced by traditional retailers in the digital age. With over 800 U.S. retail locations as of January and a workforce of 19,000 employees, the company’s footprint was substantial. However, the weight of $615.7 million in debt, including over $133 million owed to suppliers, proved too much to bear. Monthly operational costs, including $26 million in rent, further strained the company’s finances.
“We deeply appreciate our dedicated team members, our customers and communities across the nation for their unwavering support for more than 80 years”, the company stated. The company’s struggle to compete with online retailers mirrors the challenges faced by many large brick-and-mortar stores. Joann’s reputation as a comprehensive crafting store was further damaged by supply chain issues, which affected its ability to maintain a diverse and well-stocked inventory. These factors combined to create a perfect storm that ultimately led to the retailer’s downfall.
Impact on Customers and Communities
The closure of Joann stores will have a significant impact on crafting communities across the United States. Customers who relied on Joann for fabrics, yarns, sewing supplies, and home decor items will now need to seek alternative sources. To accommodate loyal patrons, the company has announced that gift cards will be honored through February 28, allowing customers a final opportunity to use their store credit.
Store closures will be phased to minimize disruption, with specific dates to be announced on Joann’s website and app. This gradual approach aims to provide customers and employees with some degree of certainty during the transition period. However, the loss of Joann as a community hub for crafters and DIY enthusiasts will undoubtedly leave a void in many local areas.
Looking Ahead: The Future of Specialty Retail
The demise of Joann Inc. raises important questions about the viability of specialty retailers in today’s market. As consumers increasingly turn to online platforms for their shopping needs, brick-and-mortar stores must find innovative ways to remain relevant and competitive. The crafting industry, in particular, may see a shift towards smaller, local shops or online communities that can offer personalized service and niche products.
For now, crafting enthusiasts can take advantage of the going-out-of-business sales at Joann locations and online, where products are being marked down significantly. As this chapter closes for Joann Inc., the retail landscape continues to evolve, leaving both opportunities and challenges for those who follow in its wake.
Sources:
Joann is closing all of its remaining stores and going out of business
Crafts retailer Joann closing down all U.S. stores, one month after filing Chapter 11 bankruptcy
