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.
Key Takeaways
- Joann Inc. is closing all of its U.S. stores after filing for Chapter 11 bankruptcy protection.
- The company failed to find a buyer to keep operations running, leading to the closure of over 800 retail locations.
- Going-out-of-business sales are being conducted at all remaining store locations and online.
- Customer gift cards will remain valid through February 28, 2025.
- Joann reported $615.7 million in debt, including over $133 million owed to suppliers.
The Fall of a Crafting Giant
Joann Inc., a stalwart in the American crafting and fabric retail industry for over eight decades, has announced the closure of all its U.S. stores. This drastic measure comes after the company filed for Chapter 11 bankruptcy protection for the second time in just one year. The first filing occurred in March 2024, and despite efforts to restructure and stay afloat, Joann has been unable to secure a buyer to keep its operations running.
The company initially planned to close 500 stores while keeping 300 open, but the inability to find a suitable buyer has led to the decision to shutter all locations. GA Group and Joann’s lenders have acquired the retailer’s assets, marking the end of an era for the once-thriving business.
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
Liquidation and Customer Impact
As part of the bankruptcy proceedings, Joann has initiated going-out-of-business sales at all remaining store locations and online. Customers can expect significant markdowns on products such as fabrics, yarns, sewing supplies, and home decor items. The company has assured that customer gift cards will remain valid through February 28, 2025, allowing loyal patrons a final opportunity to use their store credit.
“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 announced. The closure dates for individual stores will be announced on Joann’s website and app, allowing customers to plan their final visits accordingly. This phased approach aims to minimize disruption and provide ample time for both employees and customers to adjust to the company’s exit from the market.
Financial Struggles and Market Challenges
Joann’s financial woes have been mounting for some time. The company reported a staggering $615.7 million in debt, including over $133 million owed to suppliers. With monthly operational costs of $26 million in rent alone, the retailer faced significant challenges in maintaining profitability. As of January, Joann had over 800 U.S. retail locations and employed 19,000 people across the country, excluding Hawaii.
Like many brick-and-mortar retailers, Joann has struggled to compete with online retailers in recent years. The company also faced significant supply chain issues, which affected its reputation as a comprehensive crafting store. These challenges, combined with changing consumer habits and increased competition, ultimately led to the company’s downfall.
The End of an Era
The closure of Joann stores marks the end of an era for crafting enthusiasts and hobbyists across the United States. For many Americans, Joann was more than just a store; it was a hub for creativity and a source of inspiration for countless projects. The loss of this retail giant will undoubtedly leave a void in the crafting community and change the landscape of the fabric and craft supply industry.
As Joann prepares to close its doors for good, customers are encouraged to take advantage of the ongoing liquidation sales and use any remaining gift cards before the February 28 deadline. The company’s website and app will continue to provide updates on store closures and final sales, allowing loyal patrons to bid farewell to this once-beloved crafting destination.
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
