Joann Fabrics to Close All Stores Following Bankruptcy

After more than 80 years in the fabric and craft retail industry, Joann Fabrics has announced the closure of all its remaining U.S. stores. This decision comes after the company’s second bankruptcy filing in less than a year, marking the end of an era for the beloved retailer.

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A Legacy in the Craft Industry

Founded in 1943 as a small fabric store in Cleveland, Ohio, Joann Fabrics grew into one of the largest craft and fabric retailers in the U.S. Over the decades, the company expanded to nearly 800 locations nationwide, becoming a go-to destination for sewing, crafting, and home décor enthusiasts. However, in recent years, financial difficulties and shifting consumer habits put the company under strain.

Financial Challenges and Bankruptcy Filings

In early 2024, Joann Fabrics filed for Chapter 11 bankruptcy, hoping to restructure its operations and reduce its debt. Although the company attempted to reorganize and emerge as a private entity, ongoing financial struggles continued to impact its business. By early 2025, the company filed for bankruptcy again, initially planning to shut down about 500 of its stores. However, after an auction process, Joann’s assets were sold to GA Group and Wilmington Savings Fund Society, leading to the decision to completely liquidate the business.

Impact on Employees and Customers

With the closure of all locations, Joann Fabrics’ nearly 19,000 employees, including thousands of part-time workers, are facing job losses. The company has already started liquidation sales, with stores, its website, and mobile app continuing operations for a limited time. Loyal customers, who relied on Joann for crafting materials, are now looking at alternative retailers like Michaels, Hobby Lobby, Walmart, and Target for their fabric and craft supply needs.

Shifts in the Retail Industry

Joann Fabrics’ closure is part of a larger trend in the retail sector, where traditional brick-and-mortar stores are struggling to compete with e-commerce. The pandemic accelerated the shift toward online shopping, and specialty retailers have found it difficult to keep up with changing consumer habits. Other major chains, including Kmart and Big Lots, have also faced store closures and financial difficulties in recent years.

Final Thoughts

The closure of Joann Fabrics marks the end of an important chapter in the U.S. craft and fabric retail space. As liquidation sales continue, customers and employees are adjusting to the loss of a familiar and trusted brand. The retail landscape is evolving, and Joann’s story serves as a reminder of how businesses must adapt to changing consumer preferences and economic challenges.