What’s Next for Joann Inc. After U.S. Stores Shutdown?

Store closing sale with going out of business signs.

Joann Inc., an 80-year-old fabric and crafts retailer, is closing all its stores nationwide after filing for Chapter 11 bankruptcy protection for the second time in a year.

Key Takeaways

Joann Inc. is closing all U.S. stores after failing to find a buyer to keep the business operational.
The company filed for Chapter 11 bankruptcy protection for the second time, with the first filing in March 2024.
Going-out-of-business sales are being conducted at all remaining store locations and online.
Customer gift cards are valid through February 28, 2025.
Joann reported $615.7 million in debt, including over $133 million owed to suppliers.

The Fall of a Crafting Giant

Joann Inc., a household name in the fabric and crafts industry for over eight decades, has announced the closure of all its U.S. retail outlets. This decision comes on the heels of the company’s second Chapter 11 bankruptcy filing within a year, marking a somber end to a once-thriving American business. The retailer, which had over 800 locations across the country as of January, had initially planned to close 500 stores while keeping 300 operational. However, the failure to secure a buyer has led to the complete shutdown of the business.

Joann founded as a Cleveland Fabric Shop during World War II and at one point, was the largest fabrics retailer in U.S is going-out-of-business. Sales to start nationwide at 800 stores! pic.twitter.com/wR7EWDa15L

— KDZA (@KDZAradio) February 25, 2025

The company’s struggle to compete with online retailers mirrors the challenges faced by many large brick-and-mortar stores in recent years. Joann’s inventory, valued at $538.3 million, and its workforce of 19,000 employees across the U.S. (excluding Hawaii) now face an uncertain future. The retailer’s financial woes are further compounded by a staggering $615.7 million in debt, including over $133 million owed to suppliers.

The Final Thread: Liquidation and Customer Impact

As Joann Inc. begins its liquidation process, the company has initiated going-out-of-business sales at all remaining store locations and online. This presents a bittersweet opportunity for loyal customers and crafting enthusiasts to stock up on fabrics, yarns, sewing supplies, and home decor items at marked-down prices. However, it also signals the end of an era for many Americans who have relied on Joann for their creative projects and hobbies.

“We deeply appreciate our dedicated team members, our customers and communities across the nation for their unwavering support for more than 80 years,” the company stated in a press release. To minimize customer inconvenience, Joann has announced that gift cards will remain valid through February 28, 2025. This gives patrons a limited window to use any remaining store credit before the final closures. The company has promised to announce specific store closure dates on its website and app, allowing customers to plan their final visits accordingly.

The Unraveling of an American Institution

Joann’s decline can be attributed to a combination of factors, including fierce competition from online retailers, supply chain issues, and the changing landscape of American retail. The company’s monthly operational costs, which included $26 million in rent alone, became unsustainable in the face of declining sales and mounting debt. “Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann,” a company spokesperson explained earlier this year, highlighting the challenges faced by the retailer.

The closure of Joann Inc. represents more than just the loss of a retail chain; it signifies the end of a cultural touchstone for crafters, hobbyists, and DIY enthusiasts across America. As the last remnants of this once-great institution are sold off, many will reflect on the role Joann played in their lives, from providing materials for school projects to supplying fabrics for homemade quilts and curtains that adorned countless American homes.