Joann Fabrics to Close All Stores Amid Bankruptcy Filing

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Joann Fabrics, a longtime staple in the arts and crafts retail sector, has announced that it will be closing all 800 of its U.S. stores following its second bankruptcy filing.

The decision comes after failed attempts to secure a buyer to keep the 82-year-old business operational.

The closures will affect approximately 19,000 employees across 49 states, marking the end of an era for crafters and sewing enthusiasts who have relied on the retailer for decades. Liquidation sales have already begun, with customers given until February 28 to use their gift cards before they become invalid.

Joann’s financial struggles stem from declining sales, shifting consumer habits, and ongoing supply chain disruptions. The company had filed for bankruptcy earlier this year in an effort to restructure its debt, but mounting economic pressures left it unable to continue operations.

“We deeply regret the impact this decision will have on our dedicated employees, loyal customers, and the crafting community,” a Joann spokesperson said in a statement.

“Despite our best efforts to navigate the current retail landscape, circumstances have made it impossible for us to continue.”

The move follows a broader trend of brick-and-mortar retailers facing financial turmoil in an increasingly digital shopping environment.

Competitors such as Michaels and Hobby Lobby are expected to absorb some of Joann’s customer base, but many longtime Joann shoppers have expressed disappointment over the store closures.

As Joann prepares to shut its doors permanently, liquidation sales are expected to continue over the coming weeks, offering deep discounts on fabrics, sewing supplies, and crafting materials.

For affected employees, the company has stated it will provide severance packages and job placement assistance where possible. However, the closure marks another significant loss in the retail industry as legacy brands struggle to adapt to evolving market trends.

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