After operating as a Crafting Crafts community pillar for more than 80 years Joann Fabrics faces serious challenges with multiple store closures happening today. A company which faced recent financial challenges because of changing consumer patterns reported only two filings throughout one year. The Joann Fabrics closing impacted dedicated customers while local workers and community members now rely on Joann for crafting materials and community interaction.
Background of Joann Fabrics
In 1943 Joann Fabrics started as the Cleveland Fabric Shop which was opened by Hilda and Berthold Reich. The store gained quick popularity because of its inexpensive fabric before taking on the name Joann Fabrics in the 1960s. The company which became public in 1969 purchased Cloth World and House of Fabrics.
Recent Bankruptcy Filings
On March 18, 2024 and once more on January 15, 2025, Joann Fabrics filed for Chapter 11 bankruptcy. The first filing was an attempt to restructure big debts related to rising shipping costs and falling consumer demand. The company emerged from bankruptcy in April 2024 but kept struggling, and filed for bankruptcy again only a year later. The latest bankruptcy is part of an effort to enable a court supervised sale while keeping the operations of more than 800 stores alive to the detriment of the employees, provision of the local communities and overall crafting retail sector.
Financial Challenges Facing Joann
The increasingly difficult retail landscape of falling sales and inventory challenges are putting pressure on Joann Fabrics. In early 2024, the company reported net sales dropped 4 percent below the year before and net loss of $54. 2 million, after net sales surged during the pandemic. Joann Fabrics’ closing was caused by many factors such as unreliable supplier deliveries, heightened competition from online retailers like Amazon, as well as traditional competitors. Economic pressures such as inflation and rising interest rates have also seen decreased consumer spending on discretionary items for Joann, which has, therefore, impeded the retailer’s efforts to recover, as it sails through its second Chapter 11 bankruptcy filing in such little time.
Impact of Store Closures
Financial challenges have forced Joann Fabrics closing of several locations as part of its ongoing restructuring initiatives. Specifically, Holyoke, Massachusetts; Ithaca, New York; Burlington, Iowa; Owings Mills and Cockeysville, Maryland; Hickory, North Carolina; and Hermitage and Williamsport, Pennsylvania, in particular stores, have been designated for Joann Fabrics closing incidents. With Joann Fabrics closing these stores and the impending shuttering of their Visalia, Calif. distribution center, these stores will have a sizable impact on the communities in which they are located and those employees they supported.
Layoffs Associated with Closures
The company also announced yesterday that 209 of its employees are now permanently laid off due to the Joann Fabrics closing of the Joann Fabrics distribution center in Visalia. It is a decision following the company’s second Chapter 11 bankruptcy filing within 12 months, frustrating efforts to fix a persistent money situation. This news causes a lot of emotional distress for many long-term employees, as they are faced with job loss and not knowing what the future holds for them.
The Joann Fabrics closing affects not only the lives of people who spend years working for a company but also their feeling of community as part of the workplace. In addition to the 40 people who will be laid off at Joann, many families and local economies will be affected by the ripple effect of people relying on the retail store for employment and crafting supplies.
Corporate Response to Financial Issues
Joann has shown a commitment to dealing with the company’s recent challenges following its second Chapter 11 bankruptcy filing. Interim CEO Michael Prendergast acknowledged that the retail landscape was undergoing a significant amount of obstacles and listed declining sales and continued inventory shortages as chief reasons for the Joann Fabrics closing. The ongoing court supervised sale of assets is intended to satisfy creditors and for Joann to continue operations at its over 800 stores, he stated. The pipeline for the future includes enhancing customer experiences and product assortments while a stronger financial basis will allow the company to come out more resilient.
Customer Sentiment and Reactions
Joann Fabrics closing generated a lot of public attention, mainly from its loyal customers and crafting communities. Disappointment and worry have been voiced about the loss of a much loved source of materials and inspiration for hobbyists and small businesses who have relied upon Joann. Social evidence has been full of support for affected employees and discussions about the value of local craft stores. In addition to losing an important supply of crafting supplies they rely on, the closures put many at risk of feeling estranged from their passion, as well as the community of crafting networks they’ve cultivated within their area.
The composition of Joann Fabrics, which has been buffeted heavily in these tough times, will come from its loyal customer base and crafting community. The obstacles highlight the need for innovation and change in a changing retail environment.
