Joann Fabrics has been a household name for over 80 years, cherished by hobbyists and professionals alike. This retailer has long been the go-to place for fabrics, crafts, and do-it-yourself enthusiasts in the United States. Recently, it announced a massive shift in its operations—closing all stores and ceasing business.
This significant development comes as a shock to many who have relied on Joann for their crafting needs. Let’s delve deeper into why such an iconic company faces this unfortunate end and what this means for employees and customers nationwide.
Bankruptcy History
Joann Fabrics’ journey into financial distress isn’t new. The first sign of trouble appeared in March 2024, when the company filed for Chapter 11 bankruptcy protection. This was a pivotal moment, highlighting the company’s struggle to stay afloat amidst growing financial pressures. Chapter 11 is intended for businesses to reorganize and find their footing without shutting down immediately.
However, things took a turn for the worse when Joann had to file once again in January 2025. Known colloquially as “Chapter 22,” this signifies a repeat filing after an initial Chapter 11 attempt, showing the company’s unsuccessful struggle to bounce back from its prior filing. These repeated financial difficulties ultimately led Joann Fabrics to decide to close its doors for good.
Plan for Store Closures
Initially, Joann Fabrics intended to close around 500 stores. This plan allowed room for approximately 300 locations to continue serving their communities. However, this plan crumbled when they couldn’t find a viable buyer interested in keeping some stores open. Consequently, the decision was made to shut down all 800 stores across the United States.
This comprehensive closure marks the end of an era for the fabric and crafts retail industry. Joann took this drastic step to efficiently manage its financial woes, but it’s indeed a major shift affecting many loyal customers and employees.
Asset Handling and Liquidation
The asset handling and liquidation process at Joann Fabrics involves some key financial players. The GA Group, along with Joann’s lenders, has taken over the retailer’s assets. As part of this takeover, going-out-of-business sales are active both in physical stores and online, reaching out to customers eager to grab what’s left in stock.
These sales offer significant discounts, attracting customers to buy remaining stocks. Joann’s website is also actively participating in this sale, allowing customers to shop from home. However, the overarching goal is to liquidate all inventory before the company’s final closure.
Sales Promotions and Gift Card Information
The ongoing going-out-of-business sales present an opportunity for bargain hunters. These sales are comprehensive, crossing both online and offline borders, so eager crafters can still get their hands on products until the final listing. Not only can you shop in-store, but Joann has kept its website up and running to cater to all digital customers.
Gift cards are being honored during this period, but there’s a deadline. Customers can use their existing gift cards until February 28, 2025. Be sure to make use of them soon. However, once a product is bought, returns are not accepted, emphasizing the finality of this business shutdown.
Historical Context
Joann Fabrics has deep roots. Founded in 1943 as the Cleveland Fabric Shop, it burgeoned into the largest fabric and crafts retailer by 1998. It became a beloved destination for crafters and fabric enthusiasts across the United States, boasting a rich history filled with dedicated customers and employees.
This success saw an encouraging boost during the pandemic when home crafting picked up momentum. But the company grappled with challenges such as spiraling debt, inventory shortages, and fierce competition, only compounded by a slow economic recovery and inflation, which led to its financial downfall.
Impact on Employees
The closure of all Joann Fabrics locations spells massive changes affecting around 19,000 employees nationwide. Of these, about 15,600 are part-time workers who played an integral role in daily store operations. Employees must now navigate the uncertain waters of job hunting in a competitive market.
Beyond individual workers, entire communities face the brunt of these closures. Joann’s closures will have ripple effects on local economies, especially in areas where the stores were major employers. Communities that depended on Joann as a retail staple will feel its absence deeply.
Conclusion
The shuttering of Joann Fabrics is certainly a loss for many crafting enthusiasts as well as the wider retail landscape. It marks the end of a well-loved brand, leaving a void in the fabric and crafts community. This decision underscores the challenges retailers face in today’s economic climate.
While the business chapters close for Joann, its legacy continues to inspire creativity and craftsmanship among many. To keep informed on developments like these and more retail news, visit Business Dots Daily. Joann Fabrics may be closing, but its story will be remembered by the countless projects it inspired and the craft lovers it served so well over the years.
