Joann Shuts Down All Retail Outlets After Bankruptcy Auction

Joann Fabrics, the beloved fabric and craft retailer, has announced the closure of all its stores after a recent bankruptcy auction. This marks the end of an era for millions of crafters, sewing enthusiasts, and DIY lovers who have relied on Joann for fabrics, sewing supplies, and home decor items for over 80 years.

With the company shutting down completely, customers are left wondering: What happens next? Can gift cards still be used? Will there be liquidation sales? How does this impact small businesses that depend on Joann for supplies?

To answer these questions, let’s break down everything you need to know about Joann’s closure, including key details, store closing sales, and alternatives for craft and sewing supplies.

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Why Is Joann Closing All Its Stores?

1. Financial Struggles and Bankruptcy

Joann Fabrics filed for Chapter 11 bankruptcy in early 2024 after facing significant losses due to declining customer demand, increased competition, and supply chain issues. Originally, the plan was to close 500 out of 800 stores, but after an auction where Joann’s assets were sold to financial firms, the decision was made to shut down completely.

2. Competition From Online Retailers

E-commerce giants like Amazon and discount fabric sellers have changed the way people shop. Many customers now prefer to buy fabrics and craft supplies online rather than visit brick-and-mortar stores. This shift in consumer behavior made it difficult for Joann to compete with lower prices and faster delivery options.

3. Post-Pandemic Challenges

During the COVID-19 pandemic, Joann saw a temporary sales boost as more people turned to crafting and sewing. However, as life returned to normal, sales dropped sharply. The company struggled to keep up with high overhead costs and declining foot traffic.

4. Rising Rental and Operational Costs

Physical retail stores have seen a rise in rental and operational expenses. With Joann operating in multiple locations, maintaining profitability became increasingly challenging, leading to the difficult decision to shut down operations.

What Customers Need to Know

1. Can You Still Use Joann Gift Cards?

Yes, but only until February 28, 2025. After this date, all Joann gift cards will become invalid. Customers are encouraged to use them as soon as possible before stores close permanently.

2. Are There Store Closing Sales?

Yes! Joann is holding liquidation sales at all locations. Shoppers can expect major discounts on fabric, sewing machines, yarn, home decor, and craft supplies. However, these sales are final—meaning no returns or exchanges.

3. Can You Still Order Online?

For now, Joann’s website and mobile app remain operational. Online orders are being processed, but availability may be limited as inventory sells out.

4. Are Returns or Exchanges Allowed?

No. As part of the liquidation process, all sales are final. Joann is no longer accepting returns, even for items purchased before the announcement.

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Impact on Small Businesses and Crafters

For many small business owners, Joann was the go-to supplier for fabric, sewing notions, and crafting materials. With all stores closing, they will need to find alternative suppliers quickly. Here are some great options:

Michaels – Great for arts, crafts, and limited fabric selection.
Hobby Lobby – Offers sewing supplies and fabric.
Walmart – Carries fabric and craft essentials at lower prices.
Amazon – Wide variety of crafting and sewing supplies.
Local Fabric Stores – Support independent businesses in your area.

Advice for Small Business Owners

Stock up early on essential supplies before Joann’s liquidation ends.
Explore wholesale fabric suppliers for cost-effective options.
Consider alternative craft stores such as Etsy and specialty fabric boutiques.