Joann Fabrics Shutting Down, All Stores to Close After Bankruptcy

3 hours ago

2101 posts

Joann Fabrics Shutting Down, All Stores to Close After Bankruptcy \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Joann Inc., the beloved fabric and craft retailer, is going out of business and closing all its stores nationwide after over 80 years in operation. The Hudson, Ohio-based company, which filed for Chapter 11 bankruptcy twice in the past year, cited declining sales and inventory shortages as key factors in its demise. Earlier this month, Joann announced plans to shutter 500 locations, but after a recent auction, financial firm GA Group and Joann’s term lenders will now oversee a full liquidation of the company. Going-out-of-business sales will take place at all Joann locations and online in the coming weeks.

Joann Fabrics Closure: Quick Looks

Joann Going Out of Business: The 80-year-old craft retailer is shutting down all stores after filing for bankruptcy again.
Full Liquidation Underway: GA Group and term lenders will oversee Joann’s wind-down and conduct going-out-of-business sales.
Store Closures Expected in Weeks: Joann has not provided exact closure dates, but final sales will take several weeks.
Joann.com Still Open—For Now: The website and mobile app remain operational, but changes are expected soon.
Second Bankruptcy in a Year: Joann first filed for Chapter 11 in March 2024, then again in January 2025, citing low demand and inventory issues.
Big Discounts Expected: Customers should expect major clearance sales on fabric, sewing machines, and craft supplies.
Gift Cards and Rewards Uncertain: Joann has not yet clarified whether gift cards or loyalty rewards will be honored.
What’s Next? Joann’s final days are approaching, marking the end of an iconic craft retailer that has served generations of hobbyists.

Deep Look

After more than 80 years as a go-to destination for crafters, quilters, and DIY enthusiasts, Joann Fabrics is closing all of its stores nationwide. The iconic fabric and craft retailer is shutting down after filing for bankruptcy for the second time in a year, marking the end of an era for one of the largest specialty craft chains in the U.S.

Joann had initially pledged to keep its stores open following a Chapter 11 bankruptcy filing in January 2025, but worsening financial conditions forced the company into full liquidation. The move comes just weeks after Joann announced the closure of 500 locations, which was already set to impact more than half of its footprint. Now, the company has confirmed that all remaining stores will shut down permanently.

A recent auction determined that financial services firm GA Group and Joann’s term lenders will take control of the retailer’s assets and oversee its going-out-of-business sales. Joann’s official statement acknowledged that leadership had “made every possible effort to pursue a more favorable outcome that would keep the company in business,” but ultimately, liquidation was the only viable option.

For now, Joann.com and the company’s mobile app will remain operational, but customers should expect final sales to take several weeks, with details on specific store closure dates to be announced soon.

The Fall of Joann Fabrics: What Went Wrong?

The craft retail industry has undergone major shifts in recent years, and Joann struggled to adapt to a rapidly changing marketplace. Once a staple for crafters and home sewers, the company faced growing competition from online giants like Amazon and discount retailers like Walmart, which offer cheaper alternatives for fabric and craft supplies.

Additionally, rising operational costs, inflation, and declining consumer spending put increasing pressure on the business. Joann had already been struggling with inventory shortages and weakened demand, particularly after the pandemic-fueled crafting boom began to fade.

The company first filed for Chapter 11 bankruptcy in March 2024 in an effort to restructure, emerging as a private company shortly after. However, financial difficulties continued to pile up, leading to another bankruptcy filing in January 2025. Despite efforts to stabilize, Joann couldn’t recover from mounting debts, and liquidation became the only option.

What This Means for Customers

As Joann winds down operations, loyal customers will have one last chance to shop before stores close forever. Going-out-of-business sales will likely feature significant discounts on fabric, sewing machines, and craft supplies, similar to previous liquidation sales seen in the retail sector.

For shoppers who still have gift cards or loyalty rewards, Joann has not yet confirmed whether they will remain valid during final sales. Customers are encouraged to use any store credit as soon as possible before locations shut down permanently.

Joann.com will remain online for now, but with closures approaching, product availability and order fulfillment could soon be affected. The company has promised to provide updates on its website regarding final closure dates and any changes to online operations.

A Loss for the Crafting Community

For decades, Joann served as more than just a retail store—it was a creative hub for millions of crafters. From seamstresses and quilters to DIY hobbyists, Joann was a cornerstone of the crafting world, offering not just supplies, but also classes, inspiration, and community connections.

The loss of Joann leaves a significant gap in the fabric and craft retail landscape, particularly for customers who relied on in-person fabric selection and expert advice. While alternative retailers like Hobby Lobby, Michaels, and online stores will continue to serve the crafting community, Joann’s closure marks the end of an era for those who grew up visiting its aisles for fabric, sewing patterns, and art supplies.

What Happens Next?

With final sales expected to take several weeks, Joann customers should prepare for store closures sooner rather than later. Discounts will likely increase as liquidation progresses, with store inventory clearing out before locations shut down permanently.

For many, Joann’s closure is a stark reminder of the retail industry’s ongoing struggles, as beloved brands face growing competition and changing consumer habits. While the crafting community will endure, the loss of Joann is a significant moment in retail history, signaling the end of a company that has served generations of creative minds for more than 80 years.