JoAnn Fabrics and Crafts is a prominent name in craft or fabric retailing in the United States. The company now intends to shut down operations in 500 stores across the Country, which indicates a major shift in the market. This closure, which serves as a cost-cutting measure, is part of the firm’s Chapter eleven bankruptcy restructuring process.
Seeing a cap in the number of stores, long-time loyal customers and craft lovers are now worried about the future of the brand’s retail stores, online shopping facilities, and the broader retail market in the United States. In this article, we delve deeper into JoAnn Fabrics’ bankruptcy, store closings, and the impact that will result from them.
Why Is JoAnn Closing Store?
The JoAnn Fabrics industry decided to shut down 500 of its retail store locations to mitigate financial losses as they filed for a second bankruptcy within a year. Initially, the company filed for Chapter eleven protection back in March of 2024 and seems like a recovery after restructuring and keeping all of its stores. Still, the company has once again filed for bankruptcy in January of 2025 – the reasons include bearing hefty financial losses due to:
- Severe operational inventory shortages.
- Changing customer spending habits reduces sales.
- A significant portion of key, discretionary purchases are being eliminated due to inflation.
- Lower prices due to new market competition from online retailers and big-box chains.
Financial difficulties are not just unique to this business. Several retailers that did well during the pandemic, when home DIY and crafting were quite popular, are currently facing challenges as consumer trends begin reverting to pre-COVID times.
Which JoAnn Stores Are Closing?
JoAnns is not going through a general shutdown, but the closures will affect a large chunk of its 800 stores in the United States. Some of the states that will feel it the most are New York, Pennsylvania, California, Florida, Michigan, Indiana, and Washington.
Below is a list of some of the JoAnn locations set to shut down:
New York
- Clifton Park
- Albany
- Niagara Falls
- Amherst
- Rochester (two locations)
- Westbury
- Poughkeepsie
- Middletown
- Canandaigua
Connecticut
- Brookfield
- Manchester
- Milford
- Norwich
- Torrington
New Jersey
- Mays Landing
- Toms River
- Mount Laurel
- Lawrenceville
Customers wishing to know the detailed list of JoAnne store openings and closings may visit the expansion and contraction website of the company for more information.
What Does This Mean for JoAnn Customers?
- Clear-Out Sales
The liquidation process and clearance sales at the closing stores are set to begin on February 15, 2025, as part of the restructuring plan. The sales are expected to run for a long duration during which a variety of crafting materials, fabrics, and home decorations will be available at discounted prices.
However, customers need to keep in mind that no returns will be accepted, and deals will take some time to emerge. If you are searching for major savings, the latter part of the sale might be best.
- Changes Made To Gift Card Policy
JoAnn gift cards are accepted in physical stores however they are not accepted online. If you possess a JoAnn gift card, it is best recommended to use it sooner rather than later.
- Is It Possible That Online Sales Will Be Affected?
Currently, JoAnn’s online shop is working. However, customers need to note that changes in stock levels and delivery windows can be expected as the closing of the stores is likely to affect the fulfillment centers and supply chain.
The Future of JoAnn: Can It Survive?
JoAnn is not going bankrupt entirely because of the closures–at least for now. The company still intends to operate around 300 stores and its online business.
However, retail experts are concerned that the company has to change its strategy if it wants to last in the long term. Some potential strategies for JoAnn’s survival include:
- Improving e-commerce: To compete with Amazon, Walmart, and Etsy, JoAnn must enhance its website and offering.
- Concentrating on the Most Successful Stores: Closing less successful locations saves costs while keeping the highest volume of stores leads to business stabilization.
- Developing New Partnerships: Partnering with crafting influencers, creators, and brands may help appeal to a younger demographic.
JoAnn will be particularly focused on these upcoming months to evaluate whether she gets back on the path of recovery or determines that this is in fact the beginning of the end.
The Bigger Picture: What JoAnn’s Closures Mean for Retail
The struggles of JoAnn extend far beyond her company. With the growing presence of online shopping and inflation leading consumers to tighten their budgets, traditional stores are suffering greatly.
Predicted Retail Closures for 2025
JoAnn is not the only one who will face the consequences of store closures. An additional 15,000 retail stores are projected to close in the fiscal year of 2025. Other companies include but are not limited to the following brands and retailers:
- Kohl’s
- Macy’s
- Rite Aid
- CVS and Walgreens
The closing of stores by big companies indicates that even the oldest brands are unable to make enough profit in the current economy.
Final Thoughts
JoAnn closing 500 stores will affect millions of willing critics who relied on the company for their building needs. While locations do remain operational, consumers can expect the following changes:
- Big cuts at the closing of stores starting February 15, 2025.
- Less opportunity to use gift cards (redeemable only at select physical stores).
- Store links have been cut in a lot of states.
- Potentially, a move to buying crafting materials from online stores.
For now, JoAnn is still in business, but like the rest of the industry, its long-term stability is contingent upon its ability to evolve. The big question is, can JoAnn reinvent itself, or is this merely the onset of an extended slide? Well, it is hard to say this now.
