Joann filed Chapter 11 twice in 12 months — all 800 fabric stores closed for good

Joann started in 1943 as Cleveland Fabric Shop and grew into America's dominant fabric and crafts retailer. By 2018 it had 855 stores in 49 states and $2.7 billion in annual revenue. At its peak it employed 23,000 people and was the destination for anyone sewing, knitting or crafting.

The first sign of trouble came in fiscal 2019, when Joann lost $546.6 million. A COVID-era boom in masks and DIY projects temporarily masked the problems — sales surged and the chain returned to profit. But the recovery was short-lived: when pandemic demand faded, the underlying debt and store-level losses resurfaced.

Joann filed for Chapter 11 bankruptcy on 18 March 2024, cutting more than $500 million in debt and emerging as a private company five weeks later. But the restructuring did not fix the business. On 15 January 2025 it filed for Chapter 11 again. On 12 February it announced 500 store closures; on 24 February, when no buyer emerged, it said all remaining stores would liquidate. The last stores closed on 30 May 2025.

In June 2025, rival Michaels bought Joann's intellectual property, private labels and domain name — but not a single store. The chain that dominated American sewing for 82 years was reduced to a brand name on a competitor's website.