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Joann Inc.: The End of an Era for Craft Retail
In a shocking turn of events, Joann Inc. has announced it will close all of its more than 800 fabric and craft stores nationwide, marking a significant loss for both employees and customers alike. This decision follows a second bankruptcy filing within just 12 months and a subsequent court-approved auction of its assets, which has been dominated by the Great American Group and Wilmington Savings Fund Society.
How Did We Get Here?
Founded in 1943 as the Cleveland Fabric Shop, Joann has long been a staple in the crafting community. The last few years, spurred by the pandemic, initially allowed Joann to thrive with a surge in DIY projects as consumers turned to home crafts. However, the resurgence of in-person shopping and rising competition swiftly turned the tide.
As reported, Joann had faced overwhelming financial difficulties leading to its first bankruptcy in March 2024. The recent bankruptcy filing on January 15, 2025, resulted from issues like delayed supplier deliveries and a mounting inability to meet financial obligations. Despite efforts by Joann’s leadership and negotiation teams to find a solution that could preserve jobs, it became clear that liquidation was the only viable path.
The Impending Store Closures: What to Expect
With the liquidation process in action, all Joann stores are expected to remain operational until the end of May 2025. According to spokesperson Amanda Hayes, plans for going-out-of-business sales are already underway in many locations, with the aim of minimizing the impact on employees and customers as they finalize the wind-down. More than 19,000 jobs are at risk, including vast layoffs set to occur at its Ohio headquarters.
Shifting Consumer Behavior: A Wider Trend?
The closure of Joann stores reflects a larger trend impacting retailers across America, where many face pressures from changing consumer behaviors that favor online shopping—something cemented by the COVID-19 pandemic. As malls and physical stores see foot traffic decline, some predictions suggest that up to 25% of America’s largest malls could close by 2027, according to research from Green Street Advisors. This has raised questions over the future of brick-and-mortar retail, especially for niche markets like crafting and DIY supplies.
Insights from Industry Analysts: What’s Next?
Experts suggest that Joann’s situation exemplifies growing challenges within the retail sector. Kevin Thompson of 9i Capital Group states, “The pandemic was the first blow—falling revenue and rising debt put Joann in a tough spot.” As financial pressures mount, many other small retailers could potentially follow suit unless they adapt quickly and effectively to a vastly altered retail landscape.
Voices of the Crafting Community
Customers and employees have expressed deep sadness over the impending closures. Many individuals fondly recall the joy of crafting, often associated with Joann as their go-to destination for materials. The company issued a statement thanking its dedicated team members and the communities that supported it throughout its 80 years of operations, reflecting the emotional toll of the closures.
The Future of Craft Retailing
Looking ahead, the crafting landscape may shift significantly without Joann. Competitors might find themselves facing a crowded market, eager to fill the void left by the retailer's absence. Smaller local craft shops could gain traction, but it’s unclear if they can match the extensive inventory and reach of a national chain. As the dust settles from Joann's demise, one thing remains certain: the retail environment is evolving rapidly, and the survival of the fittest will determine how future crafting retail looks in America.
Final Thoughts: The End of Joann Inc.
As Joann starts its liquidation process, the plight of its employees and the impact on the crafting community remain at the forefront. Those interested in obtaining craft supplies should keep an eye out for closing sales at local stores, which represent both an opportunity for bargains and a farewell to an enduring institution in the fabric and crafting world. The broader implications of these closures will continue to stir discussions about the future of retail and consumer habits, as many brace for the shifts yet to come.
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