Joann Fabrics Faces Major Store Closures Amidst Financial Struggles

Joann Fabrics, a staple in the fabric and sewing retail industry, has been serving craft enthusiasts for over 80 years. However, the company, once synonymous with fabric and sewing supplies in America, is now grappling with financial struggles and has announced significant store closures across the U.S. The company’s journey, challenges, and future plans reveal both the changing retail landscape and the challenges faced by long-standing businesses in the modern era.

A Storied History

Founded in 1943 by German immigrants in Cleveland, Ohio, Joann Fabrics originally operated under the name Cleveland Fabric Shop. The company’s name was later changed to Jo-ann Fabrics in 1963, inspired by the names of the founders' daughters, Joan and Jacqueline Ann. Joann’s growth trajectory accelerated after it went public in 1969, and by 2011, it had made its first exit from the stock market. The company was re-listed on NASDAQ in 2021, signaling an attempt to rebound from previous financial setbacks.

Over the years, Joann Fabrics became a leading retailer of fabric, sewing supplies, and craft materials in the U.S., expanding its store base to 800 locations across the country. However, despite its deep roots in the American retail market, the company’s recent financial performance has taken a significant downturn.

Financial Struggles and the Need for Bankruptcy Protection

Joann Fabrics has faced mounting difficulties in recent years, with a combination of factors pushing the company to the brink. The COVID-19 pandemic initially sparked a surge in interest in home crafting, including sewing and fabric projects. However, as the pandemic subsided, the trend shifted, and the demand for fabric and sewing materials sharply decreased.

In March 2024, Joann filed for Chapter 11 bankruptcy protection, citing a sharp decline in the popularity of DIY crafting and increasing competition from online retailers like Amazon and large craft chains such as Hobby Lobby. Despite efforts to stay afloat, the company struggled with profitability and cash flow issues.

Massive Store Closures in 2025

In a move to restructure its operations and secure a more sustainable future, Joann announced that it would close around 533 stores in 2025, representing nearly two-thirds of its 800 U.S. locations. This decision comes after the company submitted a motion to the bankruptcy court in February 2025, seeking approval to close a significant number of stores.

The closures will span across all 50 U.S. states, with the most significant number of closures occurring in California (61 stores), Florida (36 stores), Pennsylvania (33 stores), Ohio (33 stores), and Michigan (33 stores). These closures are part of a broader strategy to streamline operations, reduce costs, and ensure the company’s long-term viability.

The Company’s Response and Plans for the Future

Joann Fabrics has acknowledged the difficult nature of this decision, expressing that it will have a significant impact on employees, customers, and the communities where the stores are located. The company stated that scaling down its operations was a necessary step to ensure its future growth and sustainability.

The closure process is expected to unfold over several months, with clearance sales already underway. However, as of now, Joann has confirmed that gift cards can still be used in-store but cannot be redeemed for online purchases. Specific timelines for each store’s closure remain unclear.

Joann’s Path Forward

While Joann Fabrics has struggled with declining sales and increasing competition, its decision to downsize could be a key part of its recovery plan. The company has expressed a commitment to refocus on its core offerings, primarily fabric, sewing supplies, and other craft materials, potentially shifting more of its business to e-commerce channels to adapt to the changing retail landscape.

The move to Chapter 11 bankruptcy protection and the store closures represent an attempt to rebrand and refocus, similar to how other retailers have responded to shifts in consumer behavior and market competition. If successful, Joann may be able to emerge as a leaner, more efficient retailer poised for growth in the digital age.

Impact on the Retail Landscape

Joann Fabrics’ challenges highlight broader issues faced by the retail industry, particularly traditional brick-and-mortar stores. The rise of e-commerce giants like Amazon, the changing consumer behaviors post-pandemic, and intense competition from discount and specialty retailers have forced many businesses to reconsider their operations. As consumer preferences continue to evolve, businesses like Joann must adapt, integrating both online and offline experiences to remain relevant.

Joann’s story also mirrors the struggles faced by other legacy retailers that once dominated the American shopping landscape but are now grappling with the need for digital transformation, restructuring, and consolidation.

Looking Ahead: Will Joann Fabrics Recover?

While the future of Joann Fabrics remains uncertain, the company’s actions to streamline operations and refocus its efforts provide a glimmer of hope. The road ahead will likely involve significant adjustments, but with its strong brand recognition and the potential for growth in online retail, Joann Fabrics could emerge from this period of turbulence as a more modern and efficient company.