Joann Fabrics is closing a string of stores after declaring bankruptcy last year.
The arts and crafts retailer operates roughly 850 stores across the United States, but 2025 will see several closures as the chain works to get its finances on track.
Why It Matters
Retail chains have faced economic uncertainty since the coronavirus pandemic, which pushed many consumers toward online shopping over brick and mortar.
Almost 25 percent of America's largest shopping malls are anticipated to close by 2027, according to research from real estate services firm Green Street Advisors.
What To Know
Where Is Joann Fabrics Closing Stores?
After declaring Chapter 11 bankruptcy, Joann is closing six stores in these locations:
- Burlington, Iowa
- Owings Mills, Maryland
- Holyoke, Massachusetts
- Ithaca, New York
- Hickory, North Carolina
- Williamsport, Pennsylvania
The closing stores will be offering shoppers major discounts, up to 90 percent off all items.
When Did Joann Fabrics Declare Bankruptcy?
The arts and crafts chain filed for bankruptcy in March 2024 after facing consistent financial issues.
While Joann initially saw a sales boom during the pandemic as people focused on arts and crafts projects, sales declined in the years following.
The retailer also had $1.2 billion in long-term debt as of December 2023, according to earnings reports.
What People Are Saying
Joann's chief financial officer, Scott Sekella, released this statement: "We remain committed to our suppliers, partners, Team Members and other stakeholders, and are focused on ensuring we continue to operate as usual so we can continue to best serve our millions of customers nationwide."
R.J. Hottovy, head of analytical research at Placer.ai, told Newsweek: "Joann experienced a surge in demand for crafting products during the pandemic, but this has normalized over the past several years, leading to downward pressure on visitation trends. At the same time, rent concessions offered during the pandemic have been lifted, increasing the cost of operating stores. These challenges have impacted many retailers, contributing to store closures for Joann and other chains across the industry."
Topsort head of marketing, Umer Paracha, told Newsweek: "JOANN Fabrics' store closures reflect the broader challenges traditional retailers face in today's evolving landscape. Consumers shop in so many different online and offline ways now that many brands with a storied heritage, like JOANN which was founded in 1943, have struggled to keep up with ever changing habits amongst shoppers."
Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told 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. 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."
Kevin Thompson, finance expert and founder/CEO of 9i Capital Group, told Newsweek: "Joann took on significant debt to fund a buyout, leaving it with large liabilities. To cut costs, the company began closing stores to reduce expenses. Joann's bankruptcy was driven by excessive debt, an oversaturation of stores, and lingering effects from the pandemic. Additionally, rising tariffs and inflation increased the cost of importing fabrics and other goods, further straining the company's finances."
Michael Ryan, finance expert and founder of MichaelRyanMoney.com, told Newsweek: "The company is caught in what I call the 'middle-market squeeze' – too big to operate with the agility of local craft stores, yet too small to match the purchasing power of retail giants like Walmart or the algorithmic efficiency of Amazon. When you factor in that the average Joann customer only visits 4-6 times per year vs 12-15 times, the challenge of maintaining large retail spaces becomes clear."
What Happens Next
As the six stores prepare to shut their doors, shoppers can score major savings on the remaining arts and crafts inventory, which is priced up to 90 percent off.
Thompson said shoppers should expect more Joann closures in the near future as the chain continues to navigate its bankruptcy.
"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 said.
Moving forward, retailers will need to meet consumers where they are in order to stay competitive, Paracha said.
"By adopting next-generation retail media strategies—what the industry calls 'Retail Media 3.0'—retailers can integrate digital tools like interactive displays and data-driven targeting to create seamless omnichannel experiences," Paracha said. "These strategies engage shoppers, drive revenue, and blend online and offline shopping in ways that meet modern expectations."
Ryan echoed this sentiment, saying the retailers who succeed will have to target both the online and in-person shopper.
"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."
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