Joann Fabrics Closes Dozens of Stores Amid Bankruptcy
Joann Fabrics Officially Closes Dozens of Stores Across the US
Joann Fabrics, one of the largest craft supply retailers in the United States, has officially announced the closure of dozens of stores across the country. This decision follows the company’s bankruptcy filing in February 2025, as it struggles with nearly $1 billion in debt. The closures are part of a broader plan to restructure operations and secure the company’s future in the competitive retail market.
Causes Behind Joann Fabrics’ Bankruptcy
According to CNN Business (February 12, 2025), Joann Fabrics experienced a sharp decline in demand for craft supplies after the pandemic. During lockdowns, many people turned to crafting as a hobby. However, as normal routines resumed, sales plummeted. Additionally, intense competition from online retailers, which often offer lower prices and greater convenience, significantly impacted the company’s performance.
The company’s financial strain culminated in the decision to close about 40 stores that consistently underperformed. The goal is to reduce operating costs, improve efficiency, and focus resources on profitable locations.
Regions Most Affected by Store Closures
Ohio, the state where Joann Fabrics was founded, is among the hardest-hit areas. As reported by NBC4 Columbus, nearly all stores in Central Ohio will shut down, leaving just one location operational. Long-time customers in the area expressed disappointment, noting that Joann Fabrics has been more than just a store — it has been a hub for the local crafting community for generations.
Joann Fabrics to Continue Online Operations
Despite the closures, Joann Fabrics has reassured customers that its online operations will continue as usual. USA Today reported that the company is shifting its focus to its e-commerce platform, recognizing the growing trend of online shopping. Customers can still purchase their favorite crafting supplies via the company’s website, which will offer the same variety and service that shoppers have come to expect.
Impact of Joann Fabrics Closures on Customers
The decision to close dozens of stores will directly impact communities that rely on these locations not only for supplies but also as gathering places for craft enthusiasts. In many areas, Joann Fabrics has served as a community hub where people attend workshops, share ideas, and find inspiration.
Furthermore, some customers have raised concerns about job losses and the difficulty of accessing materials in regions where stores are closing. The company has pledged to support affected employees and maintain strong service through its digital platform.
Conclusion
The closure of Joann Fabrics stores underscores the challenges traditional retailers face in adapting to shifting market demands. With nearly $1 billion in debt, the company is banking on its restructuring plan and e-commerce strategy to stay competitive. While the physical stores may be fewer in number, Joann Fabrics remains committed to serving craft enthusiasts across the United States.