Joann Fabrics, the popular fabric and craft retailer, has announced that it will be closing all of its remaining U.S. stores following its second Chapter 11 bankruptcy filing within a year. After decades of serving craft enthusiasts, the company is set to shut down operations entirely, marking the end of an 82-year legacy.
Why Is Joann Fabrics Closing?
The decision comes after declining consumer demand, increased competition, and inventory challenges led to severe financial struggles. Originally, Joann planned to close around 500 out of its 800 locations, but after an auction process, the company’s new ownership group, GA Group and term lenders, opted for a full liquidation instead.
What Happens Next?
- Going-out-of-business sales will begin immediately at all Joann stores.
- The Joann website and mobile app will remain operational for the time being.
- Gift cards must be used by February 28, 2025, after which they will no longer be valid.
- The final court hearing to approve the bankruptcy proceedings is scheduled for February 26, 2025.
A Look Back at Joann’s Legacy
Joann Fabrics was founded in 1943 by German immigrants in Ohio. Over the decades, it grew into a staple for sewing, knitting, and home decor enthusiasts. Despite multiple restructuring efforts, shifting retail trends and increasing online competition made survival difficult.
Customer and Employee Impact
- Thousands of employees will lose their jobs as stores begin to close.
- Longtime customers are expressing disappointment and nostalgia over the store’s closure, with many heading to Joann’s for final shopping trips.
Joann Fabrics’ closure marks the end of an era for craft lovers across the country. As liquidation sales begin, loyal customers will have the chance to grab discounted materials and say goodbye to a beloved brand that has been a creative hub for generations.