Nearly one-third of Joann Fabric and Craft stores will close this week, with the remaining locations shutting down next month after a second bankruptcy in under a year.
Key Facts:
- Joann filed for bankruptcy for the second time in 11 months, following an initial filing in March 2024.
- About 255 stores are closing this week, while the remaining 500+ locations will shut down in May.
- Closures are happening nationwide, with California, New York, Florida, Indiana, Michigan, and Pennsylvania most affected.
- Interim CEO Michael Prendergast cited a tough retail environment, inflation, and inventory issues as major causes.
- The company had hoped to find a buyer through a court-supervised sale process but is now proceeding with shutdowns.
The Rest of The Story:
Joann Fabrics, a staple for crafters and hobbyists for decades, is closing all its stores across the United States.
After a second bankruptcy filing within a year, the retailer began its final round of going-out-of-business sales.
A total of 255 stores are shuttering this week, with over 500 more set to close in May.
The company’s leadership admitted that persistent inflation, falling sales, and severe inventory problems left Joann unable to stay afloat.
Court documents show that many stores were underperforming and unlikely to attract new investment.
Despite efforts to sell the business, Joann now joins a growing list of national retailers unable to recover from recent economic pressures.
97% of Jo-Anne Fabrics stores were profitable. Yet they’re declaring bankruptcy.
15,000 retail stores set to close. WHY? It’s not Amazon…
HERE’S the NEW game. @TheVinoMom pic.twitter.com/L4DqeNYwJr
— Chanel Rion OAN (@ChanelRion) April 25, 2025
Commentary:
The closing of Joann Fabrics is another sad chapter in the story of traditional American retail.
Generations of loyal customers will feel the loss of a place that provided materials for school projects, wedding decorations, and countless home crafts.
It’s not just a store that’s disappearing—it’s a piece of American community life.
Much of Joann’s downfall can be blamed on factors outside their control.
Pandemic restrictions, steep competition from online sellers offering fast delivery, and the high cost of doing business during persistent inflation proved too much.
Many big-box retailers now find themselves in similar danger, showing that the model of large-footprint retail stores may be reaching the end of its era.
It’s clear that simply cutting costs and “right-sizing” store numbers wasn’t enough.
Even after emerging from bankruptcy once, Joann couldn’t regain the strong customer base it needed to survive.
When consumer spending shrinks and costs rise, retail chains carrying large inventories across hundreds of locations are hit the hardest.
At the same time, there is still a future for smaller specialty stores that deliver exceptional service and unique products.
Many independent fabric and craft stores continue to thrive by focusing on personal relationships, curated offerings, and building local loyalty—things massive chains struggle to replicate.
Joann’s closure reminds us that size isn’t always strength in today’s marketplace.
Adaptability, speed, and customer connection are now the keys to survival.
The Bottom Line:
Joann Fabrics is closing all its stores after failing to recover from two bankruptcies within a year.
Economic challenges like inflation and online competition made survival impossible for the once-popular chain.
The shutdown is another sign that big-box retail faces major threats in today’s economy.
Going forward, success will likely favor smaller businesses that focus on personal service and niche markets.
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