444 Stores Closing: Why This Chain Didn't Survive The Post-Pandemic Economy

UNITED STATES — A beloved crafts retailer plagued by dwindling sales is expected to shutter the last of its remaining U.S. stores permanently at the end of the month.

By May 31, Joann Fabric and Crafts will close the doors to 444 stores. The company filed for bankruptcy in January, marking its second Chapter 11 filing in less than a year.

For decades, the chain has served a base of crafters, sewers, quilters and more.

"JOANN has been a beloved destination for makers and craft enthusiasts for more than 80 years," said Tim Shilling of GA Group.

Many locations initiated their going-out-of-business sales in February. More than 100 of those stores were shuttered by the end of April.

Some remaining stores still have inventory and will continue to offer sales through the end of the month. In addition to craft supplies, all furniture, fixtures and equipment will be on sale. Find a store near you by visiting this link.

"This sale represents an extraordinary chance for JOANN's loyal customers to find great deals on their favorite craft and home décor supplies," said Michael McGrail of Tiger Group. "We encourage shoppers to visit early for the best selection."

Hundreds of stores across 48 states that are set to close are currently offering liquidation sales, but online sales closed as of March 5. The retailer has warned that there are no other authorized Joann shopping websites.

Last March, the first retailer filed for Chapter 11 bankruptcy but kept all of its stores open. At that time, the company said it had acquired $132 million in new funding, which it planned to use to reduce its debt by approximately $505 million.

Why Is Joann Going Out Of Business?

Sales at Joann had slumped after a jump during the pandemic when Americans were isolated in their homes and spent more money on sewing and craft supplies. Due to the subsequent inflation, many people had to cut back on their discretionary spending.

But Cait Lambert, a marketing professor at the Wharton School of the University of Pennsylvania, said there’s more to the story.

“Retail is tough, but what Joann does is even tougher,” she told the school's business journal. “They had a lot of things working against them that made it particularly tough for them to stay alive.”

She says Joann’s business model was built around carrying a massive inventory to cater to crafters seeking variety.

“It matters if they get rid of a velvet or a lace or a tie dye, because for somebody, that’s the thing they wanted,” she said. “They need enormous amounts of space, enormous amounts of inventory, and they’re often located in areas that have been seeing declines in foot traffic.”

Joann's began as a small fabric store in Cleveland, Ohio, in 1943.

The news comes as other major retailers prepare for mass permanent closures, such as J.C. Penny and Rite Aid, CVS Health, Party City, Forever 21 and more.

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