Craft and textile store chain Joann is closing 500 U.S. locations after seeking its second bankruptcy protection in nine years. The closings are prompted by the firm’s failure to maintain profitability while facing weakening sales and heightened online competition.
In a press release on February 12, 2025, Joann’s CEO cited “difficult market dynamics” as the underlying factor in the bankruptcy filing. It was “not an easy choice,” however, the CEO stated clearly, that it was only the correct choice that would allow us to continue the long-term survival of this company. Dedicated to serving our loyal customers and adapting to the changing retail world,” etc.
Bankruptcy filing offers Joann an opportunity for restructuring the debt, in order to concentrate on the most successful places. Yet the closure of its 500 shops will also be keenly experienced in terms of jobs and many local communities, where there is no local craft and fabric shop.
Having originated in the 1943s, Joann is a long-established favorite of sewists, makers, and do-it-yourself enthusiasts. However, the growth of internet retailers (e.g., Amazon) and changed customer behavior have been stresses on the retailer. While it has worked to update its stores and become more online prominent, Joann has been unable to keep up in an ever-more digital economy.
This is Joann’s second bankruptcy filing. The company had earlier filed for Chapter 11 protection in 2018 but was able to come out of it after restructuring its business. This time around, however, the situation seems more challenging, with the company struggling with increasing debt and reduced traffic in its stores.
Employees and customers were sad to hear the news. “Joann has been in my life since I can remember,” said a long-time customer. “It’s sad to see so many stores close.”
The company has promised customers that it will keep its remaining stores and website open throughout the restructuring period. Gift cards and returns will continue to be accepted, and the company’s loyalty program will continue to operate.
Industry watchers explain that Joann’s plight is symptomatic of a wider trend confronting physical retailers. “The retail world is undergoing very rapid change, and businesses that don’t respond risk being left behind,” noted retail consultant Sarah Thompson. “Joann’s bankruptcy is a stark reminder of the difficulties facing traditional retailers in the digital world.
While Joann struggles to find its way out of its financial woes, the retailer has an uphill task ahead of it to restore its footing. Closing 500 stores is a major move in its restructuring strategy, but it is not certain if the retailer can remake itself for the future.
At the moment, however, Joann’s dedicated consumers are waiting to see whether the craft shop is able to navigate the troubles ahead and be strong again afterward.
