Introduction
The Joann Fabric store shutdown has sent shockwaves through the crafting community, as the company recently confirmed that it will be closing a significant number of stores across the U.S. Facing financial struggles and declining sales, Joann filed for Chapter 11 bankruptcy and is now undergoing a restructuring process to stabilize its business.
This major Joann store closures announcement is part of a broader retail apocalypse 2024-2025, where brick-and-mortar retailers are struggling due to shifts in consumer behavior, rising costs, and increased competition from online fabric stores.
In this article, we will break down why Joann is closing stores, the impact on employees and customers, and what the future holds for the company.
Why Is Joann Fabrics Closing Stores?
Joann Fabrics Bankruptcy and Financial Struggles
Joann Fabrics has been struggling financially for several years, leading to its Chapter 11 bankruptcy filing in early 2025. This move came after a failed attempt at restructuring in 2024, which did not generate the revenue necessary to keep the company afloat.
The Joann restructuring plan includes closing underperforming stores, reducing operational costs, and exploring potential buyers for the brand.
Key factors contributing to Joann’s financial struggles include:
- Declining in-store foot traffic as more consumers shift to online shopping.
- Rising operational costs, including rent, labor, and supply chain expenses.
- Strong competition from Michael’s craft store competition, Hobby Lobby vs Joann Fabrics, and big-box store competition from Walmart and Amazon.
- E-commerce impact on fabric stores as digital platforms dominate the market.
The Role of Changing Consumer Habits
Consumer shopping habits have changed dramatically in recent years, leading to a decline in craft retail sales. Many DIY enthusiasts now prefer the convenience of online shopping, choosing to buy fabric and craft supplies from digital platforms rather than physical stores.
Additionally, economic uncertainty and inflation have reduced discretionary spending, meaning fewer people are purchasing non-essential craft supplies, further contributing to Joann financial struggles.
Which Joann Fabric Stores Are Closing?
Joann Fabrics has announced that it will close 500 stores, but not all locations are shutting down. The company will still operate around 300 stores nationwide after the restructuring process.
Most affected states include:
- California – 61 stores
- Florida – 36 stores
- Ohio – 33 stores
- Michigan – 33 stores
- Pennsylvania – 33 stores
While a full list of Joann store closures has not been publicly released yet, the company has stated that these decisions are based on profitability and store performance.
Customers should expect Joann closing sales and Joann clearance events in affected locations before final shutdowns.
Impact on Employees and Customers
Joann Layoffs and Employee Concerns
The Joann layoffs will impact thousands of employees, including store workers, managers, and warehouse staff. The exact number of job losses has not been officially disclosed, but with 500 stores closing, it is expected to be a significant workforce reduction.
Employees have expressed concerns about severance packages and job transitions, and many are uncertain about their future as the company restructures.
What Does This Mean for Customers?
The Joann store closures will leave many loyal customers wondering where to buy fabric after Joann closes. With fewer physical stores available, shoppers will have to look for alternatives.
Some of the best options include:
- Joann’s online store, which will continue to operate.
- Competitors like Michaels and Hobby Lobby, which offer similar products.
- Big-box retailers such as Walmart and Amazon, which have expanded their crafting selections.
- Local craft stores, which may see an increase in customers seeking alternative fabric sources.
The crafting community concerns are growing, as many DIY enthusiasts worry about losing access to high-quality materials and in-person shopping experiences.
Future of Joann Fabrics and the Crafting Industry
Will Joann Fabrics Survive?
Despite closing 500 stores, Joann is not going completely out of business. The company is currently pursuing a sale through a court-supervised process, meaning a potential buyer could take over operations.
Possible ways Joann could recover include:
- Strengthening online sales to compete with Joann vs online fabric stores.
- Revamping store experiences with workshops and crafting events.
- Introducing exclusive product lines to differentiate from competitors.
- Implementing loyalty programs to retain customers.
However, with strong big-box store competition and increasing digital dominance, Joann’s long-term survival remains uncertain.
The Stock Market and Business Impact
Although Joann is privately owned, its bankruptcy and Joann stock market impact have broader implications for the retail sector. The closure of 500 stores signals ongoing struggles in brick-and-mortar retail, affecting suppliers, landlords, and local economies.
Quick Facts About Joann Fabrics Store Closures
- Total stores before closures: 800
- Number of stores closing: 500
- Stores remaining after closures: ~300
- Reason for closures: Financial struggles and bankruptcy
- Most affected states: California, Florida, Ohio, Michigan, Pennsylvania
- Online operations: Joann’s website will continue to sell fabric and craft supplies
Conclusion
The Joann store closures are a major shift in the crafting industry, reflecting broader changes in retail and consumer behavior. While the company is shutting down 500 stores, it is not going out of business entirely.
For employees, the Joann layoffs mean job uncertainty, while for customers, it raises questions about alternatives to Joann Fabrics.
As Joann restructures, the company’s future depends on how well it adapts to the changing market. Whether Joann can remain a key player in the DIY crafting industry changes remains to be seen, but its massive store closures signal a critical moment for the fabric and craft retail sector.