Joann Stores to Close 500 Fabric and Craft Stores Amid Second Bankruptcy Filing
A Major Blow to Crafters and Local Communities
One of America’s largest fabric and craft store chains, Joann, has announced plans to shutter approximately 500 stores across 49 states as part of its second bankruptcy restructuring in less than a year. This decision, which will impact thousands of employees and millions of customers, reflects the ongoing struggles of traditional brick-and-mortar retailers in an era dominated by e-commerce and changing consumer habits.
The closures come after a series of financial setbacks, including declining sales, rising debt, and supply chain issues. Joann’s management has stated that this move is essential to stabilize the company and make it financially viable in the long run.
Background: Joann’s Financial Struggles
Founded in 1943, Joann store has been a staple for hobbyists, sewers, and DIY enthusiasts for decades. However, despite a surge in sales during the COVID-19 pandemic, the company has struggled to maintain profitability in recent years.
The retailer initially filed for Chapter 11 bankruptcy protection in March 2024, but exited bankruptcy soon after, becoming a privately held company. The restructuring at the time aimed to reduce costs and reposition the brand for long-term sustainability.
However, Joann store failed to overcome inventory shortages and sluggish retail sales, leading to a massive financial shortfall. By early 2025, the company had accumulated approximately $615 million in debt, which made another bankruptcy filing unavoidable.
Extent of the Joann Store Closures
According to court documents, Joann Store will close 500 stores nationwide, affecting nearly 60% of its locations. While an official list of closures has not been publicly released, records show that California, Florida, Michigan, Ohio, Pennsylvania, Illinois, New York, and Washington will be among the most heavily impacted states.
Breakdown of Closures by State:
- California – 61 store closures
- Florida – 36 store closures
- Michigan, Ohio, Pennsylvania – 33 store closures each
- Illinois – 26 store closures
- New York – 24 store closures
- Washington – 21 store closures
- Indiana – 20 store closures
- Massachusetts – 19 store closures
Joann has not confirmed whether additional stores may close in the future.
Impact on Employees and Customers
Joann Store currently employs about 19,000 workers, including 3,400 full-time and 15,600 part-time employees. The closures are expected to result in mass layoffs, with many employees losing their jobs permanently.
For customers, the closures mean fewer physical locations for fabric, craft supplies, and sewing products. Many Joann Store loyalists have expressed concerns that local communities will lose an essential resource for DIY projects.
A Joann Store spokesperson acknowledged the difficulties of the situation, stating:
“This was a very difficult decision to make, given the major impact we know it will have on our team members, our customers, and all of the communities we serve.”
Going-Out-of-Business Sales and What Customers Can Expect
To clear inventory, Joann Store has announced that going-out-of-business sales will begin this Saturday at all impacted stores. Discounts on fabric, yarn, craft supplies, and seasonal décor will be available, and sales are expected to last for several months.
Shoppers are encouraged to visit stores early to take advantage of markdowns, as supplies will be sold on a first-come, first-served basis.
What’s Next for Joann?
While Joann is downsizing, the company has reassured customers that its remaining stores will continue to operate as usual. The restructuring aims to right-size Joann’s store footprint and attract potential buyers.
Joann’s bankruptcy proceedings include a planned sale to Gordon Brothers Retail Partners, a firm known for restructuring struggling retailers. However, the transaction is still subject to higher or alternative bids.
Despite the uncertainty, Joann’s management insists that the company is not going out of business entirely.
“Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann,” a company representative said.
The Bigger Picture: A Struggling Retail Industry
Joann’s closures reflect a broader trend in the retail industry, where traditional stores are struggling against inflation, changing consumer habits, and e-commerce competition.
Many major retailers—including Kohl’s, Macy’s, and Big Lots—have also announced mass closures in recent months. Experts predict that over 15,000 retail locations could shut down in 2025, more than double the closures in 2024.
Final Thoughts
Joann’s massive store closures mark the end of an era for many communities, especially those that relied on the retailer for crafting supplies.
While some customers may transition to online shopping, others—especially small business owners and older shoppers—may struggle to find convenient alternatives.
For now, Joann shoppers should check store listings, take advantage of clearance sales, and prepare for major changes in the crafting industry in the months ahead.