Joann Inc., an 80-year-old fabric and crafts retailer, is closing all its stores nationwide after filing for Chapter 11 bankruptcy protection for the second time in a year.
Quick Takes
- Joann Inc. is shutting down all U.S. stores after filing for Chapter 11 bankruptcy.
- The company failed to find a buyer to keep operations running.
- Going-out-of-business sales are underway at all locations and online.
- Customer gift cards will be valid through February 28.
- Joann faced $615.7 million in debt and struggled with supply chain issues.
A Crafting Giant Falls: Joann Inc. Announces Nationwide Closure
In a stunning turn of events, Joann Inc., a cornerstone of the American crafting community for eight decades, has announced the closure of all its U.S. stores. This decision comes on the heels of the company’s second Chapter 11 bankruptcy filing within a year, marking the end of an era for crafting enthusiasts across the nation.
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
The company’s downfall is a sobering reminder of the challenges faced by traditional brick-and-mortar retailers in the digital age. Joann’s struggle to compete with online retailers mirrors the difficulties experienced by many large physical stores in recent years. The retailer’s vast network of over 800 locations across the United States, excluding Hawaii, proved unsustainable in the face of mounting debts and operational costs.
Financial Woes and Failed Rescue Attempts
Joann’s financial troubles were substantial, with the company reporting $615.7 million in debt, including over $133 million owed to suppliers. The burden of monthly operational costs, including a staggering $26 million in rent, further strained the company’s resources. Despite initial plans to close 500 stores while keeping 300 operational, Joann failed to secure a buyer to maintain even a reduced presence in the market.
“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’s spokesperson emphasized further that they had “made every possible effort to pursue a more favorable outcome that would keep the company in business.” However, the combination of unmanageable debt and persistent supply chain issues ultimately proved insurmountable.
Liquidation and Customer Impact
As Joann begins the process of winding down operations, customers can expect significant changes. Going-out-of-business sales are now underway at all remaining store locations and online, offering discounts on fabrics, yarns, sewing supplies, and home decor items. The company has announced that store closure dates will be made available on Joann’s website and app, allowing customers to plan their final visits.
In a move to accommodate loyal customers, Joann has announced that gift cards will remain valid through February 28. This decision aims to minimize disruption and allow patrons to use their remaining balances before the final store closures. The phased approach to store closures is designed to give customers and employees time to adjust to the company’s exit from the market.
The End of an Era in American Crafting
The closure of Joann Inc. marks the end of a significant chapter in American crafting history. For generations, the retailer served as a hub for creative enthusiasts, providing materials and inspiration for countless projects. The loss of this iconic brand will undoubtedly leave a void in communities across the country, particularly in areas where Joann stores served as gathering places for crafters and artisans.
As the crafting landscape continues to evolve, the closure of Joann Inc. serves as a stark reminder of the changing retail environment and the need for businesses to adapt to new consumer behaviors and market realities. The legacy of Joann will live on in the creations of millions of Americans who found inspiration and supplies within its aisles over the past 80 years.
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
