Artists Say Goodbye to Joann as Craft Stores Shutter Permanently

After more than 80 years, Joann, formerly Jo-Ann Fabrics, will go out of business following two bankruptcy filings and acquisition by retail liquidator GA Group, the Ohio-headquartered company announced on Sunday, February 23. 

The craft store will now shutter its more than 800 stores across 49 states, eliminating approximately 19,000 jobs, the vast majority of which were hourly-wage positions, according to court documents. 

In addition to selling fabrics, sewing and quilting supplies, materials for paper crafts, and more, the company was also known for hosting crafting classes and workshops and showcasing the work of local artists in some of its stores, such as a “History Wall” dedicated to California artists at its Hawthorne Boulevard location in Torrance, California. 

Online, artists and crafters responded to the news, with one fiber artist sharing on X that they used a Joann-exclusive yarn for the most popular item on their Etsy shop and were seeking alternatives for when they “inevitably ran out.” 

“Joann is the reason I was able to have a small part of my life be that of a designer/maker,” another user wrote on X. “It was the only accessible fabric store for millions of people.”

The news comes after the company filed for Chapter 11 Bankruptcy in the United States Bankruptcy Court for the District of Delaware for the second time within a year. In January, Joann expressed interest in finding a bidder for all of its assets, citing inventory shortages and a slowing post-pandemic retail economy.

A Joann spokesperson referred Hyperallergic to a Sunday statement published on a website dedicated to the company’s restructuring. 

In the news release, Joann said GA Group and a lending agent acquired “substantially all of the company’s assets” and planned to cease the craft store’s operations.

“JOANN leadership, our Board, advisors and legal partners made every possible effort to pursue a more favorable outcome that would keep the company in business,” the spokesperson said. “We deeply appreciate our dedicated Team Members, our customers and communities across the nation for their unwavering support for more than 80 years.”

Earlier this month, Joann moved to close 500 stores, nearly a year after the company reported a debt of $1.06 billion in a bankruptcy filing. In March 2024 court documents, Joann’s Chief Financial Officer proposed a restructuring plan to shave the company’s debt by half. 

“Unfortunately, unanticipated inventory challenges … coupled with the prolonged impact of an excessively sluggish retail economy, put JOANN back into an untenable debt position,” Michael Prendergast, Joann’s Interim Chief Executive Officer, wrote in January court documents. 

The chain was founded in 1943 by German immigrants Hilda and Berthold Reich who opened the flagship location under the name “Cleveland Fabric Shop.” After expanding to 18 locations in the early 60s, the couple renamed the stores “Jo-Ann Fabrics” after their daughters Joan and Jacqueline Ann. 

Court documents show that Joann hit around $2 billion in net sales in 2024, compared with conservative Christian David Green’s Hobby Lobby, which pulled $8 billion in revenue the same year.

Pending approval from the US Bankruptcy Court for the District of Delaware, the craft store said it would begin conducting its final sales at all locations immediately, but said it would likely take a number of weeks. The store continues to sell items at a discounted rate on its website.