By johnathan 
Joann Fabrics Announces Closure of All Stores Following Second Bankruptcy
Joann Fabrics, a prominent fabric and craft retailer with a history spanning over 80 years, 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 a significant shift in the retail landscape for crafting enthusiasts.
A Legacy of Crafting Comes to an End
Founded in 1943 by German immigrants in Cleveland, Ohio, Joann Fabrics grew from a single storefront into a national chain, becoming a cornerstone for hobbyists and professionals alike. The company’s extensive inventory catered to a wide range of crafting needs, from sewing and knitting to home décor projects. Despite its longstanding presence, Joann faced mounting financial challenges in recent years.
Financial Turbulence and Bankruptcy Filings
The retailer’s first Chapter 11 bankruptcy filing occurred in March 2024, aiming to restructure and reduce over $500 million in debt. Emerging as a private entity, Joann hoped to stabilize its operations. However, unforeseen inventory shortages and a sluggish retail economy exacerbated the company’s financial woes, leading to a second bankruptcy filing in January 2025. Interim CEO Michael Prendergast highlighted that inventory levels dropped by approximately 10%, significantly impacting sales and operational stability.
The Decision to Liquidate
Initially, Joann planned to close about 500 of its 800 stores to “right-size” its footprint. However, after an auction process, GA Group and Wilmington Savings Fund Society acquired the company’s assets for $105 million, leading to the decision to liquidate all 831 stores and cease online operations. This move signifies the end of Joann’s presence in the retail market.
Impact on Employees and Communities
The closure of all Joann stores will have a profound impact on its workforce and the communities it served. With approximately 19,000 employees nationwide, the shutdown signifies a substantial loss of jobs. Communities that relied on Joann for crafting supplies and as a local gathering spot for hobbyists will feel the void left by its departure. The company has expressed gratitude for the support from its team members, customers, and communities over the past eight decades.
Customer Considerations During Liquidation
As Joann winds down operations, going-out-of-business sales are underway at all locations, offering discounts on remaining inventory. The company’s website and mobile app will remain operational during this period to facilitate online orders. Customers are advised to utilize any existing gift cards by February 28, as they will no longer be honored after this date.
A Reflection on Joann’s Journey
Joann Fabrics’ closure marks the end of an era for a retailer that played a significant role in America’s crafting culture. From its humble beginnings in Ohio to becoming a nationwide staple for crafters, Joann’s journey reflects the dynamic and often challenging nature of the retail industry. The company’s efforts to adapt to changing market conditions underscore the complexities retailers face in an evolving economic landscape.