Joann, the beloved fabric and crafts retailer that has served generations of quilters, seamstresses, and school projects for over 80 years, announced on Sunday that it will permanently shut down all 800 of its stores across 49 states.
The decision follows years of financial struggles, with filing for Chapter 11 bankruptcy twice within the past year. Despite previous attempts to restructure and keep the company afloat, its assets were auctioned off on Friday. The winning bidder, financial services firm GA Group, now plans to liquidate the company’s operations and initiate going-out-of-business sales at all locations, pending approval from the bankruptcy court.
“This is not the outcome we had hoped for,” Joann said in a statement. “We explored every possible option to preserve the company, but given the financial constraints and changing market conditions, this decision became unavoidable.”
A Legacy of Crafting and Community
Founded in 1943 in Cleveland, Ohio, by German immigrants, Joann—originally known as Jo-Ann Fabrics—became a household name in the crafting industry. With its vast selection of fabrics, yarns, sewing machines, and seasonal decor, the company grew into a nationwide chain, serving millions of customers and employing approximately 19,000 workers at its peak.
Joann stores have long been a gathering place for the crafting community, where hobbyists and professionals alike could find inspiration, attend workshops, and purchase materials for their creative endeavors.
“I grew up going to Joann with my mom,” said longtime customer Diane Caldwell, 52, of Sacramento, Calif. “It was our go-to place for holiday decorations, school projects, and my first sewing machine. It’s heartbreaking to see it go.”
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Financial Struggles and Changing Consumer Behavior
Joann’s financial troubles became apparent in March 2024 when the company, then publicly traded, filed for Chapter 11 bankruptcy to reduce its mounting debt—estimated at nearly $1 billion. As part of its restructuring, Joann returned to private ownership, hoping that the shift would provide the flexibility needed to turn its business around.
However, the company continued to face significant challenges, including supply chain disruptions, declining sales, and increased competition from online retailers such as Amazon, Etsy, and specialty craft suppliers. The COVID-19 pandemic had briefly boosted sales as people turned to home crafting projects during lockdowns, but demand tapered off as life returned to normal.
In January 2025, Joann filed for bankruptcy once again, announcing plans to close 500 of its 800 stores. At the time, executives expressed hope that the remaining locations could be saved. But with no buyer willing to keep the brand operational, the decision was made to shut down the entire company.
GA Group, which now owns Joann’s assets, confirmed that it will oversee the full liquidation of all stores, with closing sales beginning immediately. The exact timeline for shutting down operations has not been disclosed.
Impact on Employees and Local Economies
The closure of Joann will leave thousands of employees without jobs and create a void in many communities that relied on the store for affordable crafting materials.
“It’s devastating,” said Maria Lopez, a Joann employee in Houston, Texas. “I’ve worked here for 15 years, and it feels like we’re losing more than just a job—we’re losing a family.”
Joann’s departure will also impact small business owners and independent crafters who depended on the store’s inventory for their products. For many, the retailer was the only nearby source for specific fabrics, tools, and supplies.
“Joann was my go-to for custom orders,” said crochet artist Leah Roberts, who sells handmade blankets online. “Now, I’ll have to pay higher prices and wait longer for deliveries.”
What’s Next for Joann Customers?
With exiting the market, crafters will need to turn to alternative retailers such as Michaels, Hobby Lobby, and online suppliers. While some of these options offer competitive selections, many customers worry about the loss of unique variety and frequent discounts.
The company has stated that customers can continue to use their gift cards until February 28. Store credit and coupons, however, will no longer be valid once the liquidation sales conclude.
In its farewell statement, Joann thanked its customers and employees for their loyalty over the decades.
“We are proud of the legacy we have built and the millions of projects we have helped bring to life. We encourage our customers to take advantage of our closing sales and to continue supporting the craft and sewing community.”
As Joann prepares to close its doors for the final time, its disappearance marks not just the end of a retail chain, but the loss of a cultural institution that brought creativity into American homes for generations.
