Craft Giant Joann Files for Bankruptcy—Again

JoAnn Fabrics and Crafts Retail Location I

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JoAnn Fabrics and Crafts Retail Location I
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Joann In a Knot

Bad news for the crafty crowd, as Joann, the beloved arts and crafts retailer, has filed for bankruptcy. Again. 


Here’s everything you need to know. 

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Joann Files For Bankruptcy

Once one of the country’s largest arts and crafts retailers, Joann announced on Wednesday that it is filing for Chapter 11 bankruptcy and seeking a sale to keep its operations alive.

Joann
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Joann’s Second Bankruptcy in Less Than a Year

The 82-year-old retailer, known for its sewing supplies, fabrics, and general crafting needs, first filed for bankruptcy in March 2024

https://www.cnn.com/2025/01/15/business/joann-bankruptcy/index.html

. It managed to bounce back as a private company a month later, keeping all of its stores open despite financial turbulence.

Joann
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What Went Wrong?

According to court documents, sluggish sales and what the company described as “acute and unexpected” inventory issues played a major role in its downfall. 


Supply chain disruptions left shelves emptier than expected, driving customers elsewhere and creating a ripple effect Joann couldn’t recover from in time. 

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Stores Stay Open

Despite the bankruptcy proceedings, the retail chain has assured customers that its 865 stores across 49 states will remain open. The company is actively looking for a buyer to take over and keep the business running.  


However, if no buyer emerges, liquidation could be on the table — a fate no crafter wants to imagine.