Joann, the long-established fabric and craft retailer, is set to close approximately 500 of its 800 stores across the United States. The decision follows its recent Chapter 11 bankruptcy filing, marking the second time in less than a year that the company has sought financial protection.
Once a staple for hobbyists and do-it-yourself enthusiasts, the retailer has struggled in recent years due to mounting debt, declining sales, and an increasingly challenging retail environment. Despite efforts to restructure and revive operations, ongoing difficulties have made it impossible for the company to sustain its expansive footprint.
Founded in 1943 in Cleveland, Ohio, Joann has long been a trusted name in the crafting community. Over the decades, the company expanded significantly, positioning itself as a go-to destination for sewing, quilting, and home decor supplies.
The shift in Consumer Behavior was blamed for the closure.
However, a shift in consumer behavior and intensifying competition has placed immense pressure on the business. Retail giants such as Hobby Lobby and big-box stores like Target have expanded their offerings in arts and crafts, chipping away at Joann’s market share. The post-pandemic decline in at-home crafting temporarily boosted sales and exacerbated the company’s financial struggles.
While an attempt had been made to emerge from a previous bankruptcy in 2024 as a privately held entity, new challenges quickly arose. Inventory shortages became a primary concern, with stock levels falling by over ten percent, leading to severe operational distress.
Economic factors, including inflationary pressures and changes in discretionary spending habits, only added to the retailer’s woes. As customers became more cautious with their purchases, demand for crafting supplies saw a noticeable decline.
Financial losses necessitated the closure.
In light of these challenges, Joann’s leadership thoroughly assessed store performance and determined that significant closures would be necessary to stabilize operations. The affected locations span over 40 states, with some of the most critical impacts expected in California, Florida, Indiana, Michigan, New York, Pennsylvania, and Washington.
Although the number of job losses remains uncertain, the closures will undoubtedly affect thousands of employees. Company representatives have acknowledged the problematic nature of this decision and expressed their commitment to supporting impacted workers through the transition.
Meanwhile, efforts are underway to secure Joann’s future through a court-supervised sale process. A potential buyer has been identified, with Gordon Brothers Retail Partners positioned as the “stalking horse” bidder, establishing a baseline offer that may attract additional interest. The outcome of this process will be crucial in determining the retailer’s ability to navigate the evolving landscape and maintain a presence in the market.
The planned closures reflect brick-and-mortar retailers’ broader challenges in an era where shifting consumer preferences and economic pressures demand constant adaptation.
While Joann remains a recognized and respected brand within the crafting community, its long-term survival will depend on its ability to restructure, optimize operations, and redefine its role in an increasingly digital and competitive marketplace.
As the retail industry continues to evolve, the company’s fate serves as yet another reminder of the delicate balance businesses must strike to remain relevant in a rapidly changing world.