The biggest go-to fabric and craft spot, Joann Fabrics voluntarily filed for Chapter 11 bankruptcy—not just once, but for a second time in a year due to financial and inventory issues. The 82-year-old retailer is seeking approval from the bankruptcy court to sell the company.
Joann representatives said the company faced an “unexpected ramp-down, and, in some cases, the entire cessation of production” of in-demand items, leading to product shortages. As a result, the company saw a reduction in sales and has been unable to pay off its $615 million debt.
“Since becoming a private company in April, the Board and management team have continued to execute on top-and bottom-line initiatives to manage costs and drive value,” said interim CEO Michael Prendergast in a statement. “However, the last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step.”
The company first announced it would file for bankruptcy in March 2024, after it was able to acquire $132 million from new financing and financial accommodations. This was expected to reduce their debt by about $505 million. However, the challenges persisted.
Here’s what’s next for Joann following the bankruptcy filing, plus how shoppers and sewing enthusiasts are taking the news.
Is This the Official End for Joann?
The fabric store is now awaiting court approval to sell all of its assets under Section 363 of the U.S. Bankruptcy Code. Gordon Brothers Retail Partners, LLC (the owner of Big Lots), is considered the initial bidder to potentially acquire Joann, the company said. However, it’s still actively soliciting alternate bids.
If you’re panicking about your local Joann closing, no need to clear out all of your favorite craft supplies just yet—the majority of the locations are still open and operating as usual, along withJOANN.com. However, Retail Dive reported that out of its over 800 stores across 49 states, at least eight locations across Iowa, North Carolina, Maryland, Pennsylvania, New York and Massachusetts are closing.
Shoppers’ Reactions to Joann Filing for Bankruptcy (Again)
For years, DIYers have fled to Joann for their sewing, needlepoint, and other crafting necessities. So the news of the bankruptcy filing isn’t sitting well with many of the retailer’s loyal shoppers: Reactions expressed an overall sense of disappointment.
In the r/sewing Reddit thread, two users shared they’ll no longer have a local retail store to shop for their quilting needs.
“Total bummer,” one wrote. “There are no longer any fabric stores within 100 miles of where I live (unless you count Walmart or a small Hobby Lobby—both of which have very limited textile selections).” Another chimed in, adding that they’ll have to “travel over an hour” to find high-quality fabric.
Most users weren’t too shocked. (“This is a major bummer but not really surprising,” one said, receiving 262 upvotes.) But some were a bit stunned, considering it seems to have been the main-stop shop for fabrics: “It’s crazy because I go to Joann’s frequently… probably once a week. We have 4 in my town. Every single one is ALWAYS busy. Always!!! this makes me sad.”
So if you’re disheartened, know you’re not alone. Connect with your fellow crafters for support—and to share alternative local retailers you can rely on to source your supplies.
