Craft-hobbyists and sewing aficionados across the United States are asking the question: is Joann Fabrics really going out of business? The short answer: yes – the long answer is more complex. After more than 80 years as a staple in the home-craft industry, the retailer has filed for bankruptcy, begun going-out-of-business sales, and shut down its physical store footprint.
In this article you will learn what led to the decline, when closures happened, what it means for your coupons and gift cards, where to shop now, and how the broader craft-retail landscape is changing.
Background: Joann’s Rise and Recent Challenges
Joann was founded in 1943 in Cleveland, Ohio, and grew into an 800-store chain across 49 states. It became synonymous with fabrics, sewing supplies, yarn, home décor and seasonal craft kits. However, by the early 2020s the company faced mounting headwinds: strong online competition, supply-chain hurdles, changing consumer habits, and large store overheads.
The pandemic initially boosted craft-supply demand, yet as lockdowns ended and consumer spending shifted, the momentum faded. Inventory problems and a shrinking customer base amplified the pressure, pushing debt higher and profitability lower.
The Bankruptcy Filings and Store Closure Timeline
In March 2024 Joann filed for Chapter 11 bankruptcy protection. The restructuring plan hoped to keep stores open, but the underlying issues persisted. In January 2025 the company filed for Chapter 11 again – signalling deeper trouble. At that point, Joann announced that it would shutter approximately 500 of its roughly 800 locations. Within weeks the company’s assets were sold to investors including the GA Group and Joann’s term-lenders.
By late February 2025 the decision was made to liquidate all remaining store locations. According to credible reports, the final stores closed their doors around May 30, 2025. The physical footprint of Joann as a retail chain is effectively gone.
Gift Cards, Store Hours and What It Means for Current Shoppers
When a retailer enters liquidation, typical rules change: gift cards may expire, returns may no longer be accepted, and once-loyal customers may lose preferred benefits. Joann announced that gift cards would be valid only through February 28, 2025 in participating locations. Returns were halted and going-out-of-business sales began almost immediately after the asset sale.
For U.S. customers this means: if you hold a Joann gift card and haven’t used it, you’ll want to check the specific closure policies in your region. Items you’ve purchased may no longer be returnable. The store-closing sales typically offer steep discounts (30 %–70 %), which may provide opportunity if you act quickly.
Why Joann Couldn’t Compete
Several factors converged to bring Joann down. These include:
- High debt load: Years of under-performance left the company with heavy debt and little flexibility.
- Declining foot traffic: Brick-and-mortar visits dropped as online and big-box alternatives improved.
- Supply-chain and inventory issues: Shortages or mis-allocated inventory meant fewer customer choices.
- Shifting consumer behaviour: Younger crafters increasingly buy online, consume digital patterns, and prioritise convenience.
- Aggressive competition: Retailers like Michaels and Hobby Lobby expanded aggressively, while marketplaces like Amazon undercut traditional craft-stores.
All of these contributed to a situation where Joann could neither invest sufficiently in its stores nor transform quickly enough to adapt.
What Happens to Joann’s Brands and Intellectual Property
When Joann’s assets were auctioned, its intellectual property, private-label brands (such as “Big Twist” yarn) and online assets were acquired by other parties. Michaels, for example, announced plans to bring several of the former Joann private labels into its own stores and online.
This means some products you associated with Joann may continue to appear, but under different ownership and retail channels.
Alternatives for Fabric, Yarn and Craft Supplies
If you relied on Joann for fabrics and craft kits, you still have several solid options:
- Visit Michaels or Hobby Lobby – both have large crafting sections and are expanding fabric/yarn offerings.
- Explore independent local fabric stores – often carry specialty fabrics, quilting supplies, and personalised service.
- Shop online – Amazon, Etsy, craft-specific e-retailers, and direct-to-consumer brands offer extensive selections (though shipping costs or wait times may apply).
- Leverage second-hand platforms – sites like Facebook Marketplace or eBay are increasingly used by crafters to buy clearance materials and hobby supplies.
Tips for Buying Supplies During Business Liquidation
If you are shopping during Joann’s going-out-of-business sales or similar liquidation environments, keep these tips in mind:
- Confirm the store is open and operating under liquidation rules.
- Verify gift-card expiry dates and return policies.
- Inspect items carefully for defects – clearance goods are often “as-is.”
- Compare prices with other retailers – deep discounts may still not beat online deals.
- Don’t wait too long – once inventory clears, selection shrinks and deals taper off.
The Broader Trend in Retail Crafting
Joann’s collapse is not an isolated incident but part of a broader shift in how Americans craft and shop. The traditional big-box craft store model is losing ground to digital commerce, subscription-box services, and niche specialty stores. Crafters today value experience, community, online tutorials and quick shipping as much as shelves of supplies.
Retailers that have succeeded in this niche invest heavily in omnichannel fulfilment, creative workshops and personalised customer relationships. Retail analysts say the craft market is expected to grow modestly (single-digit annual growth) but its structure will evolve: fewer physical stores, more e-commerce, and more hybrid experiences combining online learning with local events.
What This Means for Communities and Employees
Joann’s closure affects not only craft consumers but also communities and workers. The chain employed approximately 19,000 people at the time of filing. The shuttering of hundreds of stores leaves vacancies in shopping centres and potentially disrupts local economies.
For hobbyists who visited a favourite store for inspiration or classes, the loss means fewer in-person gatherings. There may be opportunity for local independent shops to fill this gap, but space and scale are different.
Final Takeaway: Yes, Joann Is Going Out of Business – but the Crafting Community Moves Forward
To answer the initial question: yes – Joann Fabrics is going out of business, having closed all of its physical stores as part of its Chapter 11 liquidation process in 2025. Gift-cards expired early, returns are no longer standard, and the brand has ceased functioning as a nationwide retailer. However, crafting supply access is by no means ending – the industry is merely reshaping.
Brands formerly housed in Joann stores will live on via other retailers, and crafters will continue to create, stitch, weave and decorate. For consumers this means shifting where you shop, verifying your deals, and embracing new sources of inspiration. The era of browsing Joann’s wide fabric aisles may be over, but the creativity that defined its customers lives on—and in many cases, flourishes in different formats.
