Joann Inc., a staple for crafters and DIY enthusiasts for over 80 years, is closing all its U.S. stores after struggling with debt, supply chain disruptions, and shifting consumer habits. The company will liquidate all remaining assets, marking the end of an era for American craft stores.
Key Facts:
- Joann Inc. filed for Chapter 11 bankruptcy in March 2024, reporting over $615.7 million in debt.
- The company had 800+ U.S. stores as of January but has been closing hundreds since then.
- Joann employed 19,000 workers across the U.S. (except Hawaii) before its financial troubles.
- A buyer group won the bid for Joann’s assets and plans to start going-out-of-business sales at all locations.
- Customers can use Joann gift cards until February 28, with store closures phased over the coming weeks.
The Rest of The Story:
Joann executives initially hoped a buyer would continue operations, but the highest bidder has opted for liquidation.
The decision to close comes after years of financial struggles, including high rent costs—totaling $26 million per month—and mounting supplier debts.
The company’s ability to stock key products also deteriorated, with suppliers cutting back on yarn and sewing materials, making it difficult to maintain its reputation as a one-stop craft shop.
By January, Joann had already begun closing around 500 stores as part of an attempt to restructure.
However, with no viable path forward, the remaining locations will now follow suit.
Commentary:
For generations of hobbyists, Joann was more than just a fabric and craft store—it was a go-to destination for creative projects, school assignments, and small businesses in need of supplies.
Its closure is another blow to brick-and-mortar retail, reflecting the broader struggles of legacy chains in an era of online shopping and economic uncertainty.
While Joann’s financial mismanagement played a role in its downfall, larger forces were also at work.
The rise of e-commerce, particularly platforms like Amazon and specialty online craft retailers, made it harder for Joann to compete.
Meanwhile, pandemic-era disruptions further hurt supply chains, leaving shelves bare and frustrating loyal customers.
The company’s debt burden was simply too heavy to overcome.
Like many retailers forced into bankruptcy, Joann tried to shrink its store footprint to survive.
But by the time it attempted to right-size, it was already too late.
The cost of keeping hundreds of locations open—especially with high rent and declining foot traffic—was unsustainable.
It’s a familiar story in today’s retail landscape: once-beloved stores disappearing, not just because of bad business decisions but because the entire marketplace has changed.
With Joann gone, many customers will be left searching for alternatives, though few will have the same in-person experience they once cherished.
The Bottom Line:
Joann’s closure marks the end of an 82-year legacy in American craft retail.
The company struggled under massive debt and supply chain challenges, making liquidation its only option.
It’s yet another example of how traditional retail is struggling to stay relevant in an increasingly digital world.
Shoppers looking for fabrics, art supplies, and craft materials will now have to turn elsewhere, with online retailers likely to benefit the most.
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