Another major retailer has announced store closures as it grapples with ongoing financial struggles. Joann Fabrics, a beloved name in crafting and home decor, is set to shutter multiple locations nearly a year after filing for bankruptcy. The closures mark a significant shift for the company, which has been a go-to destination for crafting enthusiasts for decades. While the full impact on employees and customers remains uncertain, the move underscores the mounting challenges retailers face in today’s volatile economic climate. Here’s what we know about Joann Fabrics’ store closures and future plans.
Which Joann Fabrics stores are closing?
Joann Fabrics operates approximately 850 stores across the United States. However, 2025 will bring significant changes to the retailer as it works to stabilize its finances following a Chapter 11 bankruptcy filing. As part of its restructuring efforts, Joann Fabrics has announced the closure of six stores in the following locations:
- Burlington, Iowa
- Owings Mills, Maryland
- Holyoke, Massachusetts
- Ithaca, New York
- Hickory, North Carolina
- Williamsport, Pennsylvania
Shoppers at these locations can take advantage of substantial discounts, with remaining inventory marked down by as much as 90 percent. This presents a unique opportunity for crafting enthusiasts to save on supplies before the stores close their doors for good.
Finance expert Kevin Thompson, founder and CEO of 9i Capital Group, told Newsweek that more closures may be on the horizon as Joann navigates its financial challenges.
“It’s common for businesses in this situation to streamline operations, cut expenses, and close underperforming locations in an effort to emerge stronger in the future,” Thompson explained.
As Joann Fabrics restructures, shoppers are urged to stay informed about potential future changes and take advantage of clearance sales while they last.
When did Joan Fabrics file for bankruptcy?
Joann Fabrics filed for bankruptcy in March 2024 after battling persistent financial difficulties. According to a company news release, the arts and crafts retailer was expected to secure approximately $132 million in new financing and reduce its debt by an estimated $505 million as part of its restructuring plan.
Joann Fabrics emerged from bankruptcy in April 2024, having halved its funded debt and avoiding initial store closures or layoffs. However, the recent announcement of store closures indicates a shift in the company’s strategy.
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, explained to Newsweek: “When they filed for bankruptcy in 2024, Joann’s Stores cited reduced demand for at-home craft products and a decline in discretionary spending as the key issues. However, even then, the chain didn’t shutter any of its locations. Now, it appears they’re not going to escape closures, and those are more than likely the result of that decrease in demand at those locations not being able to support the stores.”
Beene continued, “Joann’s issues speak to a broader problem for some retail chains that have emerged in the years since the pandemic. More online shopping and fewer discretionary dollars for the consumer to spend have generated less foot traffic and sales. It’s sadly a sign of the times for some retailers.”
How to survive the retail crisis
To weather the ongoing retail crisis, companies must adapt to shifting consumer preferences and embrace innovative strategies to remain competitive. Michael Ryan, finance expert and founder of MichaelRyanMoney.com, explained to Newsweek that success in the retail industry requires catering to both online and in-person shoppers.
“Looking ahead to 2025, we’re witnessing what I term ‘retail Darwinism’ in action,” Ryan said. “The successful retailers of tomorrow will be those who master the ‘phygital’ experience – blending physical and digital shopping in ways that justify the overhead of brick-and-mortar locations.”
This hybrid approach combines the convenience of online shopping with the tangible, immersive experience of in-store browsing, offering a seamless customer journey. As consumer expectations evolve, retailers that embrace this “phygital” model will be better positioned to navigate the challenges of the modern retail landscape and secure their place in the future market.