Joann is going out of business because years of weak sales, heavy debt, supply and inventory problems, and tougher competition finally caught up with the company, leading to two bankruptcies in under a year and a full liquidation in 2025.

Why Is Joann Going Out of Business?

Quick Scoop

Joann (formerly Jo-Ann Fabrics and Crafts) didn’t collapse overnight. It’s the result of a slow unraveling in a retail world that changed faster than the company did.

Key reasons people and reports point to:

  • Weak sales after the pandemic crafting boom faded.
  • Very high debt and rising costs that made it hard to invest or stay flexible.
  • Strong competition from both online retailers and rivals like Michaels and Hobby Lobby.
  • Inventory issues, including shortages and “empty shelves” on popular items.
  • Strategic missteps and a store experience many shoppers felt got worse over time (higher prices, messy stores, lower-quality selection).

Joann filed for Chapter 11 bankruptcy in March 2024, came back out, then filed again in January 2025; by spring 2025 it announced it would shut all remaining stores and liquidate, ending an 80‑plus‑year run.

What Official Reports Say

From news coverage and court/professional commentary, a few core themes repeat:

  • Weak sales & changing habits
    • After a big DIY surge during early COVID, crafting and sewing demand normalized and Joann’s revenue started slipping again by 2023.
* Shoppers increasingly moved to online options for fabric, yarn, and crafting supplies, where selection and price often beat what big-box craft chains could offer.
  • Crushing debt & costs
    • Joann was carrying around hundreds of millions of dollars in debt (about 615 million dollars was cited in court filings), which became “unsustainable” as sales softened.
* Bankruptcy in 2024 reduced some of that burden, but not enough to give the company a long runway for a turnaround.
  • Inventory and supply problems
    • The company itself blamed “acute and unexpected” inventory disruptions, including reduced or halted production on key items customers depend on.
* That meant shoppers often walked into stores and couldn’t find what they came for, which pushed them even faster to other retailers or online.
  • The final step: liquidation
    • In early 2025 Joann again filed for bankruptcy and tried to find a buyer who would keep the chain operating but ultimately failed.
* Its lenders and GA Group took control of the assets, and the chain moved into full going‑out‑of‑business mode, closing all stores and running liquidation sales in-store and online through 2025.

How Shoppers and Forums Explain It

Public forum discussions, YouTube commentary, and blog posts add some on-the- ground color to those financial facts:

Common themes from customers and retail watchers:

  1. Price vs. value felt off
    • Many crafters complained that Joann’s “full price” tags looked inflated, with perpetual coupons that made prices confusing instead of truly cheap.
 * Some felt the fabrics and notions on offer weren’t worth the price compared with online fabric shops or competitors.
  1. Store experience declined
    • Shoppers often described cluttered, understaffed stores, long lines at cutting tables, and inconsistent organization.
 * Clearance piles and seasonal reset chaos made browsing feel more like a chore than a creative outing for some customers.
  1. Product mix missed the mark
    • Forum posts and commentary videos criticize corporate leadership for not really “getting” sewists and crafters—bringing in lots of dĂŠcor and random items while core sewing sections shrank or felt neglected.
 * Some insiders and observers argue that decision‑makers weren’t close enough to actual makers and trends, so the merchandise didn’t excite loyal hobbyists the way it once did.
  1. Competition everywhere
    • Brick‑and‑mortar: Hobby Lobby and Michaels, plus regional chains and strong independent quilt/fabric shops.
 * Online: Fabric‑specific e‑commerce sites and marketplaces that offer niche prints, better quality, or better pricing with home delivery.

One typical sentiment you’ll see in business and crafting subreddits: Joann was “too big to be nimble, too slow to modernize, and too indebted to reinvent itself.”

Timeline: How It All Fell Apart

Here’s a simplified timeline to put the “why is Joann going out of business” story into context:

  1. Pandemic boom (2020–2021)
    • Mask making, at‑home crafting, and sewing caused a surge in demand; Joann benefited, but also expanded inventory and expectations based on a spike that wasn’t permanent.
  1. Post‑boom slowdown (2022–2023)
    • Demand normalized, costs rose (rent, labor, materials), and Joann faced declining revenue and mounting debt pressure.
  1. First bankruptcy (March 2024)
    • Joann filed for Chapter 11, reduced its debt, and emerged as a private company, promising to keep stores open and “restructure.”
  1. Ongoing struggles (late 2024)
    • Inventory issues, competition, and weak traffic persisted; some stores reportedly saw empty sections and fewer key items.
  1. Second bankruptcy and sale attempt (Jan 2025)
    • Joann filed for bankruptcy again, saying weak sales and inventory challenges forced its hand and that it would seek a buyer.
  1. Decision to liquidate (Feb–May 2025)
    • After no buyer stepped up to keep the chain going, the company announced it would close all stores and run going‑out‑of‑business sales nationwide and online.
 * By the end of May 2025, Joann had shut its doors for good, leaving crafters to piece together alternatives among local and national retailers.

What It Means for Shoppers and the Craft World

The end of Joann is a big emotional and practical shock because it was a staple chain for decades.

Some key impacts people are talking about:

  • Fewer “one‑stop” fabric big‑box options
    • No single replacement with Joann’s footprint exists, so many shoppers now split purchases between smaller local shops, online stores, and other chains.
  • Boost for independents, but also pressure
    • Local quilt shops and fabric stores are seeing new customers but also facing their own cost pressures and supply issues.
  • Vendors and partners hit hard
    • Suppliers that depended heavily on Joann’s massive orders (patterns, ribbons, craft goods) have themselves faced financial stress, and at least one major vendor ended up in bankruptcy after Joann’s collapse.

For many crafters, Joann’s shutdown feels like losing both a supply source and a piece of personal history—those first sewing projects, late‑night runs for last‑minute yarn, or school costume fabric runs that defined a certain era of DIY culture.

SEO Notes

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Why is Joann going out of business? Learn how weak sales, heavy debt, inventory problems, and tough competition led to the iconic craft chain’s 2025 liquidation and what it means for crafters.

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