Joann Fabrics to Close All Remaining Locations Following Bankruptcy Filing

Joann Fabrics has announced it will be closing all of its remaining locations (including the Roseburg location), just a month after filing for Chapter 11 bankruptcy. The move marks the end of an era for the 80-year-old craft store chain, which has been a staple for hobbyists and DIY enthusiasts for generations.

Why It Matters

Joann Fabrics has long served as a go-to supplier for craft supplies, fabrics, and sewing materials. Earlier this month, the company revealed plans to close around 500 of its 800 stores in an effort to restructure and regain profitability. However, Monday’s announcement confirmed that all remaining locations will shut down this year.

The closure comes amid widespread economic uncertainty for retail chains that have struggled since the COVID-19 pandemic. Many businesses have faced increased competition from online shopping, making it difficult for traditional brick-and-mortar stores to remain viable.

What to Know

Joann Fabrics’ remaining stores will close in 2025, according to Monday’s announcement. Financial services company GA Group, along with Joann's lenders, will take control of the company’s assets as it winds down operations.

While exact closing dates have not been provided, customers can expect significant store-closing sales in the coming weeks. The company has indicated that these sales could take several weeks to finalize.

Additionally, Joann’s financial difficulties have included challenges in paying suppliers on time. Data from Creditsafe revealed that at the start of 2024, approximately 30 percent of the company’s outstanding bills were overdue, with 40.22 percent being one to 30 days late by April 2024. This payment struggle contributed to supply chain disruptions, making it harder for Joann to keep shelves stocked with essential craft items.

What People Are Saying

A Joann Fabrics spokesperson addressed the decision, stating:
“As part of the ongoing Chapter 11 process and our efforts to maximize the value of the business, JOANN has filed a motion seeking court authority to begin closing approximately 500 stores across the nation. This was a very difficult decision to make, given the major impact we know it will have on our Team Members, our customers, and all of the communities we serve. A careful analysis of store performance and future strategic fit for the company determined which stores should remain operating as usual at this time. Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for JOANN.”

Finance expert Kevin Thompson, CEO of 9i Capital Group, weighed in on Joann’s financial struggles:
“The pandemic was the first blow—falling revenue and rising debt put Joann in a tough spot. When you hear the word ‘leverage,’ just know that it is synonymous with increased risk. When a company is acquired using borrowed money and interest rates start rising, debt becomes harder to service.”

Similarly, financial literacy instructor Alex Beene noted the broader implications of the closure:
“It’s not to say this will happen with other retailers that are in jeopardy, but it should serve as a warning that mass closures are possible if leadership sees the road to profitability as nearly impossible, if not non-existent.”

What Happens Next?

Joann’s downfall is part of a broader trend in retail. Research from Green Street Advisors suggests that nearly 25 percent of America’s largest shopping malls could shut down by 2027. The shift toward e-commerce and changing consumer habits continue to reshape the retail landscape, making it increasingly difficult for traditional stores to compete.

For now, Joann Fabrics customers can expect liquidation sales as the company phases out its remaining stores. More details about individual store closures will likely emerge in the coming weeks.