The crafting community is facing a significant shakeup as Joann, the beloved Ohio-based fabric and craft retailer, has filed for Chapter 11 bankruptcy for the second time in just over a year. This latest development, part of the Joann Bankruptcy 2025 saga, signals a major shift for the company as it plans to close approximately 500 of its 800 stores nationwide. The move is aimed at “right-sizing” the company’s footprint amid ongoing financial struggles, but it leaves many customers wondering about the future of their local Joann stores.
The State of Joann: A Second Bankruptcy Filing
Joann initially filed for bankruptcy in March 2024, burdened by $500 million in debt. At the time, the company managed to restructure and keep its stores open, offering a glimmer of hope for its loyal customer base. However, the retailer’s financial woes have persisted, with declining sales and production issues leading to this second bankruptcy filing in 2025.
The decision to close nearly two-thirds of its stores is a strategic effort to streamline operations and focus on profitability. While the specific list of closures has not been fully disclosed, the impact will be felt across nearly every state, with significant reductions in California, Florida, Indiana, Michigan, New York, Pennsylvania, and Washington.
What This Means for Central Ohio Shoppers
For Central Ohio residents, Joann has been a staple for crafting supplies, with locations near Easton and Polaris Fashion Place. However, it remains unclear whether these stores will be among the 500 slated for closure. Customers are encouraged to check with their local stores for the most up-to-date information on closures and inventory sales.
A Potential Sale on the Horizon
As part of its bankruptcy proceedings, Joann is pursuing a sale to stabilize its future. The company has already secured a bid agreement from Gordon Brothers Retail Partners, a firm specializing in retail liquidations and turnarounds. This move is seen as the best path forward for Joann, but it raises questions about the long-term viability of the brand and its remaining stores.
Broader Trends in the Retail Sector
Joann’s struggles are emblematic of broader challenges in the U.S. retail sector. Over the next five years, an estimated 45,000 stores are expected to close across various industries, including clothing, electronics, and home furnishings. While big-box retailers like Walmart and Costco continue to thrive, smaller and specialty retailers are finding it increasingly difficult to compete in a rapidly changing market.
What Customers Can Do
Joann customers should stay informed about their local store’s status and take advantage of closing sales or discounts. Additionally, supporting local craft stores and exploring online alternatives may become necessary as the retail landscape continues to evolve.
The Joann Bankruptcy 2025 filing marks a pivotal moment for the crafting community and the retail industry as a whole. While the company’s future remains uncertain, its efforts to restructure and focus on core operations could pave the way for a more sustainable path forward. In the meantime, customers are encouraged to stay engaged and adapt to the changing retail environment.
