Joann, a longtime staple in the craft and fabric retail industry, is set to close all 800 of its locations across the U.S., marking the end of an 80-year-old brand. As Joann shutters its doors, its competitor, Michaels, remains a dominant player in the market.
Why It Matters
Joann’s closure is the latest casualty in the evolving retail environment, where e-commerce and changing consumer habits have put pressure on traditional brick-and-mortar stores. The company’s bankruptcy follows a series of financial struggles, exacerbated by declining foot traffic and competition from online retailers.
Meanwhile, Michaels, which operates around 1,200 stores nationwide, has managed to maintain its presence, potentially positioning itself to absorb some of Joann’s displaced customers.
What to Know
Joann, which filed for bankruptcy earlier this year, announced that it would begin liquidation sales immediately, with all stores expected to close in the coming months.
Joann’s assets were auctioned off to GA Group, which will oversee the wind-down of operations. The company had previously attempted to restructure its debt but was unable to recover from prolonged financial instability.
Retail analysts have pointed to a variety of factors behind Joann’s downfall, including competition from both large retailers and niche e-commerce platforms.
The closure of Joann leaves a gap in the fabric and craft supply industry. While Michaels carries a broad range of crafting products, it has traditionally not been as fabric-focused as Joann.
Some industry experts speculate that Michaels may expand its offerings to capture Joann’s former customer base.
Michaels Map
A company map from Michaels showcases the locations of Michaels stores nationwide, providing insight into where customers can find craft supplies as Joann stores close. The map shows that Michaels has at least one location in every U.S. state except Hawaii.
Customers looking for their nearest Michaels store can use the official store locator to find locations by entering their city or ZIP code. This tool offers details on store hours, available products and directions.
What People Are Saying
JOANN said in a statement: “Following a comprehensive sale process and auction, GA Group together with the Prepetition Term Loan Agent, has been selected as the winning bidder to acquire substantially all of JOANN’s assets. In connection with this agreement, subject to Bankruptcy Court approval of the transaction, the winning bidders plan to begin winding down the Company’s operations and conduct going-out-of-business sales at all store locations.
JOANN leadership, our Board, advisors and legal partners made every possible effort to pursue a more favorable outcome that would keep the company in business. We are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on all our stakeholders. We deeply appreciate our dedicated Team Members, our customers and communities across the nation for their unwavering support for more than 80 years.”
What’s Next
As Joann prepares to exit the market, Michaels may look to expand its footprint. For customers seeking alternatives, online craft suppliers and regional fabric stores may also see an influx of demand. Meanwhile, Joann’s liquidation sales are expected to continue for several weeks before all stores officially close their doors.
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