By John Q. Hosedrinker 
Joann Fabric and Craft Stores, after filing for bankruptcy twice in less than a year, is liquidating its assets. This week, 255 locations will begin closing their doors permanently, followed by the remaining 500+ stores in May. Going-out-of-business sales are currently underway at the initially closing stores. The closures mark the end of a significant presence in the fabric and craft retail industry.
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All Joann Fabric and Craft store locations are slated to close by the end of May, leaving a significant gap in the market for craft supplies. This news has understandably upset many regular customers, who lament the loss of a convenient and well-loved store. The closure sparks concerns about access to affordable crafting materials, especially for those who relied on Joann’s for fabrics and notions.
The situation highlights the impact of private equity on established businesses. Many believe the company was deliberately driven into bankruptcy, allowing the private equity firm to acquire its assets at a discounted price. The outrage centers on this perceived predatory business practice, which has become a recurring theme in various sectors, not just retail.
The closing sales offered further frustration. While discounts were advertised, many customers felt the prices were inflated before the markdown, and that genuine bargains were scarce. Several accounts describe significant price increases followed by deep discounts, making it appear as though the company intentionally inflated prices beforehand to justify the seemingly substantial sales. In one extreme example, the patterns were not marked down further, but simply disposed of, raising questions about their contractual obligations and wastefulness.
The abrupt closure also raises concerns for employees. The impending job losses for thousands of individuals add another layer to the negative sentiment surrounding the situation. This human cost of corporate decisions is often overlooked amidst discussions about financial gains and losses. The lack of information concerning severance packages only amplifies anxieties.
The lack of viable alternatives further intensifies the disappointment. Michaels, often cited as a potential replacement, is considered an inadequate substitute by many, lacking the same range of fabrics and notions. Hobby Lobby is mentioned, but is largely dismissed due to its religious affiliations, driving customers to seek out other options. Some are exploring local craft stores and online retailers, but these options don’t offer the same convenience and selection as Joann’s did. The challenge of sourcing specific materials like zippers and threads outside of big-box stores is becoming apparent.
The closure even impacts the sentimental value attached to the stores for many, such as those who enjoyed shopping there with family members. The loss of a familiar shopping experience, especially for older generations, is a significant impact that goes beyond the mere financial aspects.
The future of craft retail remains uncertain. While some suggest that companies like Michaels may expand their offerings to fill the void, the question of who will cater to the specific needs of the crafting community remains unanswered. There’s speculation about increased thrifting and reliance on online retailers, but these options don’t provide the immediate, tactile experience of browsing a physical store.
Even pre-existing economic issues are being cited as contributing factors. The effects of tariffs and global supply chains, particularly concerning textiles from China, are mentioned as long-term challenges impacting the industry. The pandemic’s initial boost to the crafting hobby, which led to an expansion of Joann’s business, is cited as another contributing factor to their present demise, highlighting the volatility of such trends. The possibility that the company overextended itself during this period, coupled with existing private equity involvement, is discussed as a potentially crucial element.
The closing of all Joann Fabric and Craft stores by the end of May is undeniably a significant event. It signifies more than just the loss of a retailer. It highlights broader concerns about business practices, the future of craft retail, and the accessibility of craft supplies for many individuals. The immediate aftermath and long-term consequences are still unfolding, leaving the crafting community wondering where to turn next.