Joann, the largest fabric and arts retailer in the U.S., stunned the crafting world when it announced that it would be closing all 800 stores across 49 states by the end of May 2025. The announcement comes after years of financial difficulties and two bankruptcy filings in less than a year.
The news blindsided loyal customers and nearly 19,000 employees, as liquidation sales began immediately. The closure marks one of the most significant retail shutdowns in recent U.S. history, signaling the end of an era for DIY lovers and a major shift in the American retail landscape.
The Rise and Fall of a Retail Giant
In 1943, Joann started as a single fabric store in Cleveland, but eventually grew into a household name with 800 stores across America. This store was a go-to destination for sewing, crafting, and creative supplies for decades. Joann flourished during the postwar crafting boom and became a household name for hobbyists and DIYers, eventually going public in 1969.
However, Joann’s dominance gradually faded because of the rise of e-commerce, competition from big-box retailers, and changing consumer habits. While the pandemic briefly reignited interest in crafting and boosted sales, the momentum wasn’t enough to secure long-term growth. Mounting debt, supply chain issues, and a shrinking customer base ultimately caused the company to collapse, ending over 80 years of American retail history.
Pandemic Boom and Bust
During the COVID-19 pandemic, Joann’s future seemed bright. It experienced a dramatic surge in sales as Americans turned to sewing and crafting at home. In 2020, its revenues soared by nearly 25% because of homemade mask making and other DIY projects. The company went public again in 2021, hoping to capitalize on this momentum.
However, as the pandemic ended and life returned to normal, the demand for these supplies dropped sharply. Sales plummeted, and Joann’s customer base shrank. The brief pandemic boom was unsustainable, and the company couldn’t adapt fast enough to post-pandemic realities, leaving it vulnerable to mounting financial pressures and bankruptcy.
Mounting Financial Troubles
After the pandemic, Joann’s financial situation deteriorated rapidly. Burdened by hundreds of millions in debt and obligations to suppliers, the company filed for bankruptcy twice within a single year. Inventory shortages and persistent supply chain issues left store shelves empty, frustrating loyal customers.
Inflation and reduced discretionary spending put additional pressure on Joann’s already struggling profits. Efforts to restructure and streamline operations failed as creditors and landlords became impatient. With no viable buyers except liquidators, Joann’s fate was sealed. The company’s inability to adapt financially and operationally in a changing market led to the closure of all of its stores.
The Human Cost
The closure of these 800 stores will impact 19,000 full-time and part-time employees, many of whom are facing sudden unemployment. Severance packages and job placement assistance are limited, which means that many employees are left in difficult situations. Communities that once relied on Joann for jobs and creative resources are left scrambling.
Loyal customers, like teachers, artists, and local artisans, are losing a trusted source for their supplies and inspiration. Joann’s shutdown shows the vulnerability of retail workers and the ripple effects on families and local economies. For many, Joann was more than just a retail chain. It served as a community hub and a creative lifeline, offering supplies and a sense of connection, inspiration, and belonging.
The Competitive Landscape
Joann’s decline was accelerated by intense competition from online and physical retailers. E-commerce giants like Amazon and Walmart appealed to budget-conscious consumers. At the same time, specialty chains like Michaels and Hobby Lobby drew in dedicated crafters with their wider selections and aggressive promotions.
Even platforms like Etsy and independent online sellers steadily eroded Joann’s market share. The company failed to adapt to digital trends and changing consumer expectations, like online shopping and e-commerce, which further contributed to its struggles. Joann’s inability to effectively innovate and remain competitive in a rapidly changing market ultimately contributed to its downfall.
The Broader Retail Crisis
Joann’s shutdown isn’t an isolated event. Many retail businesses across the U.S. are downsizing, closing stores, or going out of business altogether. Department stores like JCPenney, Party City, and Bed Bath & Beyond have also closed hundreds of locations in recent years. Unfortunately, the shift to online shopping, changing consumer habits, and economic uncertainty have forced many traditional retailers to downsize or shut their doors entirely.
What happened to Joann shows the challenges these legacy brands face in a rapidly evolving retail environment, where agility, innovation, and digital transformation are crucial for survival. The fall of such an established brand stands as a warning to the entire retail industry about the risks of failing to adapt.
Liquidation and Aftermath
After receiving approval from the bankruptcy court, Joann began immediate liquidation sales at its remaining locations. The store’s gift cards were set to expire by February 28, and the company suspended returns, special promotions, and new online orders.
Store closures are happening in phases. Some have already shut their doors, while others are set to close by the end of May. Liquidators are now selling off the company’s inventory and store fixtures. For many communities, Joann’s departure leaves empty storefronts and a significant gap in local retail options for crafts and fabrics.
Community and Cultural Impact
For decades, Joann was more than just a store; it was a place where crafters, quilters, and artists would gather. Its closure leaves a noticeable void in towns and cities where creative communities once thrived.
Local economies might feel the loss, as small businesses, schools, and nonprofits depended on Joann for affordable materials. The shutdown also signals the end of an era for American DIY culture, as one of its most recognizable brands vanishes.
Lessons and What’s Next
Joann’s shutdown offers an important lesson for retailers: adapt or fail. The company’s inability to innovate, manage debt, and keep up with changing consumer habits led to its downfall. As the fabric and crafts market moves online, other brands must focus on digital growth, strong supply chains, and customer connection.
For crafters, Joann’s closure means finding new places for materials and community. For the retail industry, it’s a reminder that even popular brands can be disrupted in the digital age. The future belongs to businesses that can evolve with their customers and the marketplace.
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