JoAnn Fabrics Begins Liquidation Sales Amid Second Bankruptcy Filing

After nearly 80 years as a leading retailer for craft supplies, JoAnn Fabrics is closing its doors for good. The company has filed for bankruptcy for the second time and has begun liquidation sales across its 800 stores.

The decision comes after prolonged financial struggles, driven by declining foot traffic, increased competition from online retailers, and shifting consumer habits. While JoAnn saw a surge in sales during the pandemic, when more people took up crafting and DIY projects, demand has since plummeted, leaving the company unable to sustain its brick-and-mortar presence.

JoAnn’s struggles are part of a broader trend in the retail sector, where traditional stores have found it increasingly difficult to compete with e-commerce giants. Online marketplaces and direct-to-consumer brands have changed the way people shop for craft supplies, offering greater convenience and a wider selection at competitive prices.

In recent months, JoAnn attempted to restructure its business by closing underperforming locations and negotiating with lenders, but these efforts proved insufficient to keep the company afloat. With mounting debt and shrinking revenue, the company determined that liquidation was the only viable path forward.

For customers, the closure means significant discounts on crafting materials, with sales of up to 75% off as stores clear out inventory. However, for employees, the news is devastating, with thousands facing job losses as the company winds down operations.

The decline of JoAnn Fabrics signals another major shift in the retail landscape, where long-standing brands struggle to adapt to changing consumer behaviors. While crafting remains a popular hobby, the way people purchase supplies has evolved, favoring digital-first businesses over traditional retail chains.

As JoAnn Fabrics prepares for its final days, customers are flocking to stores to take advantage of clearance sales, marking the end of an era for a retailer that once served as a staple for crafters and DIY enthusiasts nationwide.