Introduction & Context
Joann Fabrics & Crafts has been a fixture in American crafting culture for decades, a place where parents found school project supplies, quilters indulged in endless fabric choices, and local artisans discovered materials for small-batch products. The news of Joann’s shuttering its final 444 stores by the end of May marks the end of an era, leaving crafters and hobbyists scrambling for alternatives. Bankruptcy announcements in early 2025 set the stage for this outcome, but many long-time customers and employees held out hope for a restructuring. Instead, going-out-of-business sales have drawn massive crowds seeking discounted craft goods and trying to bid a bittersweet farewell.
Background & History
Joann’s roots trace back to 1943, when German immigrants Hilda and Berthold Reich founded a single Cleveland-area fabric store. By the 1960s and ’70s, the business rebranded as Jo-Ann Fabrics, expanding regionally and eventually going public. It became an iconic presence in suburban strip malls, appealing to both dedicated seamstresses and casual crafters. In 2011, private-equity firm Leonard Green & Partners took Joann private, saddling it with debt. Although a pandemic-era crafting boom momentarily spurred sales—especially for mask-making supplies—Joann struggled to maintain momentum once demand waned. Mounting financial pressure led to a second Chapter 11 filing in early 2025. The cost of operating large storefronts, plus intense online competition from Amazon, sealed Joann’s fate. Each wave of closures left hundreds of communities without a physical fabric store, culminating in this final shutdown phase.
Key Stakeholders & Perspectives
1. Crafting Enthusiasts: Committed sewers, quilters, knitters, and DIYers who depended on Joann for variety and in-person inspiration. Many lament losing a tactile shopping experience—touching fabrics, matching colors under store lighting, and chatting with knowledgeable staff. 2. Employees: Thousands face unemployment, some having spent decades at Joann. They feel the weight of a store that was as much a social hub as a workplace. Some blame mismanagement and private-equity cost-cutting. 3. Alternative Retailers: Michaels, Hobby Lobby, and smaller independent craft shops stand to gain foot traffic. However, many carry more general craft supplies but not the extensive fabrics inventory that Joann specialized in. 4. E-commerce Platforms: Sites like Etsy, Amazon, and specialty fabric e-tailers have long chipped away at brick-and-mortar sales. The convenience of online ordering, even though it lacks hands-on fabric selection, appeals to busy crafters. 5. Local Communities: Joann’s closures mean losing not just a store but also local classes, gatherings, and the intangible sense of community. Some groups are trying to fill the gap with craft clubs or pop-up markets, but the scale of a national chain is hard to replicate.
Analysis & Implications
Joann’s downfall underscores how debt-laden buyouts can erode a once-healthy retail chain, pushing expansions or cost cuts that don’t align with customer needs. The pandemic spike in DIY hobbies provided a temporary lifeline, but it wasn’t enough to offset deeper structural issues. For dedicated creators, losing Joann’s broad fabric selection is a tangible loss—many smaller craft chains or big-box retailers don’t offer the same depth. Online alternatives can be cheaper, but the inability to see, feel, or test quality in person remains a drawback. The human aspect is equally significant: local crafters formed bonds with employees who offered advice on patterns or seasonal trends. With Joann’s departure, entire communities must shift how they source materials. On a broader scale, the closure raises debates about private equity’s role in retail, echoing other well-known collapses. Some watchers predict consolidation among the remaining craft retailers, while others foresee a rise in indie fabric stores or co-ops if local demand is strong.
Looking Ahead
As the final wave of closures sweeps the nation by May 31, crafters are stocking up. Liquidation sales might last well into June if inventory remains. Employees have organized farewell events in some areas, reflecting deep emotional ties. After this phase, local communities will adapt—some may see expansions of smaller specialty shops, while others might rely on big-box chains or e-commerce. Over the next six months, the craft market could see new entrants. Observers note that the pandemic created a permanent class of maker entrepreneurs who sell crafts online. These micro-business owners now need reliable, quality material sources. If the void is large enough, cooperatives or new retail ventures might flourish. Alternatively, crafters could shift more heavily to digital realms, sharing sample swatches or 3D fabric images. The personal dimension of a store like Joann remains unique, though. In 2026 and beyond, the question is whether the sense of community that once thrived in these aisles can be reinvented in a new format—or if it remains a nostalgic memory of days gone by.
Our Experts' Perspectives
- Retail analysts note that Joann’s revenue spiked 15% during the 2020 mask-making craze but fell again by 2022, reflecting temporary pandemic demand.
- Financial experts estimate Leonard Green’s leveraged buyout left Joann with over $1.8 billion in debt, leading to unsustainable interest payments.
- Craft industry insiders predict a 10–20% uptick in online fabric sales now that Joann’s physical presence is gone—though shipping times and quality concerns may frustrate some consumers.
- Sociologists emphasize that many older or small-town crafters relied on Joann as a social outlet, and losing that space could impact local community ties.
- Business historians see Joann’s story as emblematic of broader retail struggles—debt burdens, digital shifts, and the pandemic’s uneven effects accelerated its decline.