Is Joann Fabrics Going Out of Business? Latest Updates and What It Means for Shoppers

Introduction

Joann Fabrics has been a staple for crafters, DIY enthusiasts, and small business owners for over 80 years. However, recent news about the company’s financial struggles has left many wondering: Is Joann Fabrics going out of business? This article will provide the latest updates, explore the reasons behind the closures, and discuss what this means for shoppers.

Joann Fabrics Bankruptcy and Store Closures

Joann Fabrics recently announced that it is closing all of its remaining stores after filing for Chapter 11 bankruptcy for the second time within a year. Initially, the company planned to shut down around 500 of its 800 locations, but after being auctioned off, it was confirmed that all stores would close. The closure is expected to impact millions of customers who rely on Joann Fabrics for sewing, crafting, and home decor supplies.

Why Is Joann Fabrics Going Out of Business?

Several factors have contributed to Joann Fabrics’ downfall:

1. Declining Sales – Over the years, Joann Fabrics has struggled with decreasing revenue due to shifts in shopping behavior and increased competition.
2. E-commerce Competition – Online marketplaces like Amazon and specialty stores such as Michaels and Hobby Lobby have drawn customers away.
3. Rising Costs – Higher operating expenses, rent, and inflation have placed financial pressure on the company.
4. Pandemic Aftermath – Although there was a surge in crafting during the pandemic, sales declined significantly once restrictions were lifted.
5. Debt Accumulation – Mounting debt and previous attempts at restructuring were not enough to save the business.

Impact of Store Closures on Communities

The closing of Joann Fabrics stores will have a lasting impact on local communities. Many crafters, teachers, and small business owners have depended on these stores for their supplies. The closures could also affect local economies, as some Joann Fabrics locations were major retail anchors in shopping centers.

For employees, the situation is equally devastating. Thousands of workers are set to lose their jobs, and many are left wondering about their severance packages and job placement assistance.

Local economies will also feel the impact, especially in areas where Joann Fabrics was one of the primary craft stores. Smaller, independent fabric stores may see an increase in customers, but they might not be able to offer the same variety and discounts that Joann Fabrics provided.

Beyond that, shopping centers that housed Joann Fabrics stores may struggle to find new tenants. With the rise of online shopping, many retail locations remain vacant for extended periods, leading to a decline in foot traffic for neighboring businesses.

What Happens Next for Joann Fabrics?

While all physical Joann Fabrics stores are closing, the company’s website and mobile app remain operational for now. However, the future of its online presence is uncertain as the company undergoes liquidation.

What Does This Mean for Shoppers?

1. Final Clearance Sales – Customers can expect major discounts on remaining inventory as stores prepare to close.
2. Gift Cards & Coupons – Those with Joann Fabrics gift cards or coupons should use them as soon as possible before they become invalid.
3. Alternatives to Joann Fabrics – Shoppers may need to look at competitors like Michaels, Hobby Lobby, Walmart, and Amazon for their crafting supplies.
4. Future of Crafting Retailers – With Joann Fabrics exiting the market, other craft retailers may expand their offerings or introduce new locations to fill the gap.

How Customers Can Prepare for the Closure

Shoppers who depend on Joann Fabrics for crafting materials should start stocking up on essential supplies while stores remain open. Some popular items, such as sewing machines, fabric bundles, and specialty tools, may sell out quickly during the liquidation process.

Additionally, those who rely on Joann Fabrics for seasonal decorations and home decor should explore alternative retailers before the holiday season arrives. It may be beneficial to join online crafting communities to exchange ideas on where to find the best deals and resources.

FAQs About Joann Fabrics Closing

Is Joann Fabrics officially going out of business?

Yes, Joann Fabrics is closing all of its stores after filing for bankruptcy. The company was auctioned off, and the decision was made to shut down operations entirely.

Are all Joann Fabrics stores closing at the same time?

The closure process is ongoing, with store liquidation sales happening now. While an exact timeline is unclear, all locations are expected to close by the end of 2025.

Can I still shop on Joann Fabrics’ website?

For now, Joann Fabrics’ website and mobile app are still operational, but this could change in the coming months as the company finalizes its closure.

What happens to Joann Fabrics employees?

Thousands of employees will be affected by the store closures. The company has not provided details about severance packages or job placement assistance.

Will other craft stores be affected?

With Joann Fabrics closing, competitors like Michaels and Hobby Lobby may see an increase in customers. Other local craft stores might also benefit.

How long will liquidation sales last?

Liquidation sales typically last several weeks to months, depending on how quickly inventory sells out. Shoppers looking for deep discounts should act fast, as popular items will likely sell out quickly.

What should I do if I have a Joann Fabrics gift card?

Customers should use any remaining gift cards, store credits, or coupons immediately, as they may become void once the store officially closes.

Are any Joann Fabrics locations staying open?

No, all Joann Fabrics locations will close permanently. While the website remains open temporarily, there are no plans to keep any stores operational.

What crafting stores are good alternatives?

Michaels, Hobby Lobby, Walmart, and online marketplaces such as Amazon and Etsy are great alternatives. Some independent craft stores and fabric shops may also offer a unique selection of materials.

Will Joann Fabrics return in the future?

At this point, there are no plans for Joann Fabrics to make a comeback. The closure is permanent, and while another company might acquire the brand name, it is unlikely to return in the same form.

Conclusion

Joann Fabrics’ closure marks the end of an era for crafters and sewing enthusiasts. While the company struggled with financial issues, changing shopping habits, and competition, its departure will leave a significant gap in the crafting retail industry. For those who rely on Joann Fabrics, now is the time to take advantage of clearance sales and explore alternative stores for future crafting needs.

The impact of Joann Fabrics going out of business extends beyond just the crafting community. Employees, local economies, and landlords who lease retail spaces will all feel the effects of these closures. As more details emerge, shoppers should stay updated on Joann Fabrics’ website and local store announcements.

Whether you’re looking for final discounts, seeking new craft supply sources, or following the latest retail news, this is a major shift in the retail landscape. Joann Fabrics’ departure highlights the challenges traditional brick-and-mortar stores face in the modern e-commerce-driven world. For many, this closure is not just the loss of a store but the end of a beloved crafting tradition.