Joann—an 80-year-old fabric and crafts retailer—has declared that all Joann’s closing locations will soon be shuttered across the United States. After filing for Chapter 11 bankruptcy protection for the second time in less than a year, the company has made the difficult decision to wind down its operations permanently.
The Financial Struggles Behind Joann’s Closing
Joann, formerly known as Jo-Ann Fabrics, has been a household name for decades, serving quilters, seamstresses, and crafters with an extensive range of fabrics, yarns, sewing supplies, and home decor. However, despite its long-standing reputation, the retailer faced mounting financial pressures due to weak sales, high operating costs, and stiff competition from online platforms. Earlier this month, Joann announced plans to close 500 of its 800 stores, and after a failed search for a buyer to sustain operations, the company confirmed that all Joann’s closing locations would eventually shut down.
Joann’s financial woes are well-documented. With over $615.7 million in debt and a monthly rental expense of approximately $26 million, the retailer found itself in a precarious position. After its initial Chapter 11 filing in March 2024—meant to help reduce debt and restructure operations—Joann briefly emerged from court supervision only to file for bankruptcy again in January. The repeated filings and mounting debts, including over $133 million owed to suppliers, have left the company no choice but to close its doors for good.
A spokesperson for Joann emphasized that the company “made every possible effort to pursue a more favorable outcome that would keep the company in business.” Despite these efforts, the challenging retail environment, coupled with constrained inventory levels and supplier issues, ultimately forced the decision for a complete wind-down.
New Ownership and the Going-Out-of-Business Sales
In a decisive move, financial services company GA Group, together with Joann’s lenders, emerged as the winning bidder, acquiring “substantially all of Joann’s assets.” The new owners are now tasked with managing the orderly liquidation of the business. As part of this process, Joann closing clearance sales have already begun at remaining store locations and on the company’s website. Customers will find significant markdowns on fabrics, yarns, sewing supplies, and home decor items—a final opportunity to stock up on crafting essentials before the stores close permanently.
What Does This Mean for Customers?
For those wondering, is Joann’s closing their last chance to grab crafting supplies? The answer is yes. Customers with Joann gift cards should note that they remain valid through February 28. Additionally, the retailer’s website and mobile app will provide updates on the closure timeline, ensuring that shoppers have access to the latest information on upcoming sales and final store closing dates.
Crafting Community in Mourning
Joann’s decision to close all of its locations marks the end of an era for a beloved retail chain. For generations of creative enthusiasts, Joann has been synonymous with vibrant fabrics, innovative crafting supplies, and an inclusive community of makers. The closure is not only a significant blow to loyal customers but also to the thousands of employees who have helped build the brand over the past eight decades.
The liquidation process will be carried out over the next several weeks, aiming to minimize disruption to customers, vendors, and employees alike. While the immediate impact of the closures is undeniable, many in the crafting community are hopeful that this might open up new opportunities for independent craft stores and online retailers to fill the void left by Joann’s fabric closing.
For now, as the Joann closing clearance sales continue, shoppers are encouraged to act fast to take advantage of the steep discounts. Whether you’re a long-time fan or a new customer, the final days of Joann offer a unique chance to be part of a historic moment in the retail industry.
