Joann Fabric Chain to Close All Stores After Bankruptcy Filing

In a stunning blow to crafters and hobbyists across the nation Joann the beloved 80-year-old fabric and crafts retailer has announced it will close all 800 of its stores following a second Chapter 11 bankruptcy filing. The company which has been a staple for sewing enthusiasts and DIY decorators struggled to find a buyer amid mounting financial woes. This marks the end of an era for a chain that once thrived as a go-to destination for creative supplies.

Joann first filed for bankruptcy in March 2024 citing declining sales as customers cut back on nonessential spending in a tough economy. At that time the retailer managed to keep its roughly 850 stores open while restructuring its debt. However the latest filing in early 2025 proved too much to overcome. Reports indicate that despite efforts to secure a buyer no viable offers emerged leaving liquidation as the only option.

The closure will impact thousands of employees many of whom have worked at Joann for years serving loyal customers. Store shelves once stocked with colorful fabrics threads and crafting tools will soon sit empty. Regular shoppers expressed dismay on social media lamenting the loss of a community hub where they found inspiration and materials for countless projects.

Industry watchers point to broader trends behind Joann’s downfall. Rising costs of raw materials coupled with shifting consumer habits toward online shopping hit the chain hard. Smaller specialty retailers have struggled to compete with e-commerce giants offering cheaper alternatives. Joann tried to adapt by boosting its online presence but it wasn’t enough to stem the tide.

The company’s history stretches back to 1943 when it began as a single fabric store in Ohio. Over decades it grew into a national chain known for its wide selection and seasonal offerings. From quilting supplies to holiday decorations Joann carved out a niche that endeared it to generations. Its closure leaves a gap in the market that competitors may scramble to fill.

Economists note this is part of a larger wave of retail closures as traditional brick-and-mortar stores face relentless pressure. Joann’s fate echoes that of other once-dominant chains unable to pivot fast enough. For rural areas where Joann was often the only craft store nearby the loss could hit especially hard limiting access to affordable supplies.

Customers are already seeing going-out-of-business sales at Joann locations nationwide. Discounts on inventory have begun as the company works to clear out stock before shutting doors for good. Shoppers hoping to snag deals on fabric or yarn will need to act fast as shelves are expected to empty quickly in the coming weeks.

This closure raises questions about the future of specialty retail in America. Advocates for small businesses worry that the loss of Joann signals tougher times ahead for niche markets. For now crafters must turn to online options or local independents to keep their passions alive mourning a chain that stitched together communities for eight decades.