Joann fabric and craft store to shut down and close all its stores

Joann Fabrics, a leading fabric and crafts store with a legacy of more than eight decades, has decided to shut down all its U.S. stores. This comes after the company filed for its second Chapter 11 bankruptcy in a year, citing severe financial difficulties fueled by changes in the retail landscape.

Closure Details:

• Initial Plans: The company that had around 800 stores across the country initially planned to close about 500 of them.
• Complete Shutdown: Upon conducting an auction, GA Group and Joann’s term lenders took most of the company assets, prompting a consideration to wind down all operations. Liquidation sales are ongoing across all store locations. The company website and mobile app continue to operate during the time. citeturn0news6

Impact on Communities:

The shutdown of Joann Fabrics stores will have a major impact on many communities throughout the United States. Consumers, particularly those in communities that are losing their local stores, have been disappointed and frustrated. The exit of the retailer creates a gap in the market for sewing and crafting materials, affecting hobbyists as well as small businesses that used Joann for supplies. citeturn0news7

Industry Context:

Joann Fabrics’ closure is symptomatic of larger issues in the retail industry, commonly called the “retail apocalypse.” A number of large U.S. retail chains, such as Kmart and Big Lots, have also recently experienced closures and bankruptcies. Contributing factors to these issues include growing competition from online retailers, changes in consumer behavior, and economic pressures. citeturn0news6

As Joann Fabrics continues with its liquidation sales, consumers are urged to grab bargains while supplies are available. The company’s full withdrawal from the retail scene signifies the end of an era for a brand that has been a mainstay in the crafting community for more than 80 years.