If you’re a crafter, a sewer, or just someone who likes to wander through aisles of fabric and glitter, you’ve probably heard the rumors.
Whispers in the checkout line, posts on Facebook, maybe a half-empty shelf that made you wonder.
The big question on everyone’s mind for 2025 is a simple one.
Is Joann, the fabric and craft giant, actually going out of business?
The short answer is no, but it’s a lot more complicated than a simple yes or no.
It’s a story about a company hitting a really rough patch and trying to fix itself.
So let’s get into what has been going on with the place so many of us go to for our creative projects.
What Really Happened with Joann’s Money Situation?
You almost certainly saw the headlines back in early 2024.
They were pretty scary, using words like “bankruptcy.”
And that word normally makes people think a business is gone for good.
But that’s not exactly what happened here.
Joann filed for what’s called Chapter 11 bankruptcy.
This isn’t the “sell everything and close the doors” kind of bankruptcy.
It’s more like hitting a pause button.
It’s a way for a company to get protection from the people it owes money to.
This gives them some breathing room.
The whole point was to sort out their debts and keep the business running.
It was what they call a “pre-packaged” deal, which basically means they already had a plan.
They had talked to most of the people they owed money to and they all kind of agreed on a path forward.
This made the whole process much faster and smoother than some other company bankruptcies you hear about.
The goal was never to liquidate and disappear. The goal was to fix the money problems behind the scenes.
So, Why Did Joann Get Into This Mess Anyway?
A company like Joann doesn’t just wake up one day and decide to file for bankruptcy.
It’s usually a bunch of things piling up over time.
For Joann, it was a perfect storm of a few different problems that hit them all at once.
This is a story we’ve seen with a lot of retailers, actually.
The Pandemic Boom and Bust
Remember 2020 and 2021? Everyone was stuck at home.
People started baking bread, learning to knit, and making masks.
Crafting had a huge moment, and Joann’s sales went way up.
They were considered to be an essential business in a lot of places.
But then, the world started opening back up.
People went on vacation. They went out to eat. They stopped needing so many at-home hobbies.
That huge demand for yarn and fabric just…faded.
And Joann was left with a business that was built for that huge boom.
When sales went back to normal, or even a little below normal, it created a big financial hole.
Money Troubles and Getting Stuff to Stores
On top of the sales drop, there were other issues.
The company had a lot of debt, which is expensive to carry.
Then you have the whole supply chain mess that affected everyone.
Getting materials from overseas, shipping them across the country it all got way more expensive and unreliable.
Imagine trying to stock 800-plus stores when you can’t be sure when your fabric bolts will arrive.
Or when the cost of a shipping container triples.
These are the kinds of headaches that were happening behind the curtain, making it really hard to run the business well.
The Online Shopping Challenge
Let’s be real, you can buy craft supplies almost anywhere now.
Amazon, Etsy, and tons of smaller online shops are all competing.
While Joann has a website, they have generally been known for their physical stores.
The experience of walking into a huge store and touching the fabric is their main thing.
But they have to compete with the convenience of online shopping.
Keeping up with the speed and prices of online-only stores is a really big challenge for a company with huge physical locations to pay for.
Are Joann Stores Actually Closing in 2025?
This is the question that really matters to most of us. Is my local store going to disappear?
During the whole bankruptcy process, Joann was very clear.
They said their stores and website would operate as usual.
The plan was to keep the vast majority of their locations open.
Now, does that mean zero stores will close? Probably not.
It is pretty standard for any big retail company, especially one sorting out its finances, to look at its store locations.
Some stores that just aren’t making enough money might be closed down.
This is a normal part of business, but it feels personal when it’s your store.
So in 2025, you might see some changes.
A few closures: You might hear about a Joann in a nearby town closing, particularly if it was an older or underperforming location.
Inventory shifts: They’ll be working hard to get the right products on the shelves, so you might see what your store carries change a little bit.
Online focus: Expect them to put more effort into their website and app, trying to make it a better place to shop.
In-store experience: They might try new things in stores, like different class formats or new layouts, to get people to come in.
The main takeaway here is that they are not planning a massive shutdown of all their stores. Far from it.
What’s the Plan for Joann’s Future?
The bankruptcy thing wasn’t the end of the story; it was supposed to be a new beginning.
As part of the deal, Joann got a big injection of new money.
About $132 million, to be exact. That’s a lot of cash to help them get back on their feet.
Another big change is that Joann is now a privately owned company.
It used to be on the stock market, which means it had to constantly worry about pleasing shareholders every three months.
By going private, they can now think more about the long-term health of the business.
They don’t have that same kind of public pressure.
Their stated plan is pretty straightforward.
They want to use the new money to reduce their debt, which frees up a lot of cash.
Then, they want to put money back into the business.
This means making sure the right supplies are in stock, improving the online shopping experience, and generally making Joann a better place for crafters to shop.
It’s a turnaround plan. It won’t happen overnight, but the pieces are in place for them to try and rebuild.
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Frequently Asked Questions About Is Joann Going Out of Business
1. So, for real, is Joann going out of business completely?
No, Joann is not going out of business. The company filed for Chapter 11 bankruptcy in March 2024 to restructure its finances, not to liquidate. The plan all along was to keep stores open and continue operating.
2. Why did Joann file for bankruptcy if it’s not going out of business?
They used the Chapter 11 process to get rid of about half a billion dollars in debt and get new funding. Think of it as a financial tool to fix a problem, not as the business ending. It lets them reorganize their money situation while the lights stay on.
3. Is my local Joann store going to close down in 2025?
Probably not. While a small number of underperforming stores could close as part of any company’s regular business review, Joann has stated that the vast majority of its stores will remain open. The best way to know for sure is to check the store locator on their official website.
4. Are Joann’s gift cards, coupons, and rewards still good?
Yes. Throughout the restructuring, Joann has said it’s “business as usual” for customers. All gift cards, rewards, and other customer programs have been honored, and that is expected to continue.
5. What will be different about Joann now that the bankruptcy process is over?
The biggest differences are behind the scenes. The company is now privately owned and has much less debt. For customers, the hope is that this leads to better-stocked shelves, an improved website, and a healthier company that can stick around for a long time.
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Key Takeaways
Joann filed for Chapter 11 bankruptcy, which is a reorganization, not a complete shutdown.
The main reasons were a post-pandemic sales slump, high debt, and supply chain costs.
The company is NOT liquidating. Most stores are expected to remain open in 2025.
Joann received new funding and is now a private company, which gives it more flexibility.
For customers, things like gift cards and rewards programs are still in place. It’s a comeback story in progress.
