Jo-Ann Stores liquidation has sent shockwaves across the retail and crafting world. After decades of serving hobbyists, sewers, and creatives across the U.S., Jo-Ann Fabric and Craft Stores announced it will liquidate all 800 of its locations nationwide.
This decision comes amid rising financial troubles, shifting consumer habits, and the growing dominance of e-commerce. For many, Jo-Ann was more than just a store—it was a creative space, a community hub, and a staple in American crafting culture. The news has left millions of loyal customers wondering what went wrong—and what happens next.
In this article, we’ll explore:
- Why Jo-Ann Stores is shutting down all 800 stores
- What liquidation means for shoppers and employees
- How customers can take advantage of clearance sales
- What it says about the future of retail
The Rise and Fall of Jo-Ann Fabric and Craft Stores
Jo-Ann Stores began in 1943 as a small fabric shop in Cleveland, Ohio. Over the years, it grew into one of the largest fabric and craft retailers in the United States. Known for its massive selection of fabrics, yarn, sewing tools, and seasonal decorations, Jo-Ann catered to everyone from quilting grandmothers to cosplay costume makers.
At its peak, the company had more than 850 stores nationwide and thousands of employees. It was a go-to destination for:
- DIY wedding decor
- Halloween costume supplies
- Sewing machine enthusiasts
- Home crafters and scrapbookers
However, in the last few years, Jo-Ann began struggling to compete with major online retailers like Amazon, Etsy, and big-box stores such as Walmart and Michaels. The COVID-19 pandemic temporarily revived interest in crafting, but that boom didn’t last.
Why Is Jo-Ann Stores Liquidating?
The Jo-Ann Stores liquidation comes as a result of long-term financial difficulties. Despite efforts to modernize operations, launch an e-commerce platform, and rebrand stores, the company continued to report declining sales and mounting debt.
Key Factors Behind the Liquidation:
- Falling Foot Traffic: Many physical retail stores have seen fewer customers due to the shift to online shopping.
- High Operating Costs: Maintaining large storefronts and inventory became unsustainable.
- Debt Load: The company reportedly took on significant debt in recent years, which became unmanageable.
- Changing Trends: Modern consumers are favoring digital tools and experiences over physical crafts.
- Supply Chain Issues: Global shipping delays and inflation also played a role in rising costs.
In early 2025, insiders hinted that Jo-Ann was considering a restructuring or bankruptcy. However, by mid-July, the decision was made to liquidate all 800+ stores.
What Does the Liquidation Mean for Shoppers?
If you’re a regular Jo-Ann customer, this news likely comes with mixed emotions. The liquidation means massive clearance sales at all locations, but it also marks the end of an era.
Here’s what you need to know:
- Store Closing Sales Have Begun: Customers can expect 50–80% off on fabrics, craft tools, yarn, frames, and seasonal décor.
- All Sales Final: Most liquidation sales do not allow returns or exchanges, so shop carefully.
- Coupons May Not Work: Jo-Ann’s usual coupons and loyalty programs might not apply during liquidation.
- Fixtures for Sale: Stores may even sell shelves, tables, mannequins, and other display items.
- Limited Inventory: High-demand items may sell out quickly, so shoppers should visit early.
This could be a great time for crafters, artists, and small business owners to stock up on supplies—before they’re gone for good.
What Happens to Employees?
With over 800 stores closing, thousands of employees will lose their jobs. This includes:
- Store managers and floor staff
- Regional leadership
- Distribution and warehouse workers
- Corporate office employees in Ohio
Some workers were offered severance packages, while others were told their positions would end once liquidation is complete.
The Jo-Ann Stores liquidation is a blow to the retail workforce, especially as job options shrink in the physical retail space. Several labor groups are calling for better severance and support programs, including job retraining and placement assistance.
Reactions from Customers and the Crafting Community
The announcement sparked an outpouring of emotions on social media. On platforms like Instagram, Facebook, and Reddit, Jo-Ann shoppers have shared:
- Nostalgic stories about learning to sew with a parent or grandparent
- Concerns about where to buy affordable fabric locally now
- Frustration with the store’s management and customer service in recent years
Many small business owners, especially those who rely on Jo-Ann for bulk fabrics, are scrambling to find new suppliers.
Here are some real quotes from online forums:
“Jo-Ann was my happy place. I’m heartbroken.”
“Looks like we’ll be ordering everything from Etsy now.”
“It’s sad, but honestly, I saw this coming with how empty the stores have been.”
Competitors Gearing Up to Fill the Gap
With Jo-Ann Stores out of the picture, competitors are looking to capture displaced customers. These include:
- Michaels: Already a top competitor, Michaels is likely to expand its craft and fabric lines.
- Hobby Lobby: Known for arts, crafts, and home décor, Hobby Lobby may absorb some of Jo-Ann’s former customer base.
- Online platforms like Etsy and Amazon: Expect to see more fabric and craft tools sold by independent sellers.
- Local sewing shops: Some small, family-owned stores may experience a resurgence in traffic.
What Happens to Jo-Ann’s Online Store?
As of now, Jo-Ann’s online store is also winding down. While some clearance deals are available online, the majority of liquidation efforts are happening in physical stores. Customers are advised to:
- Check local store hours
- Call ahead to confirm availability
- Use up any remaining gift cards quickly
Once liquidation is complete, Joann.com will likely go offline or be repurposed.
What This Says About the Future of Retail
The Jo-Ann Stores liquidation is part of a growing trend—legacy retail brands closing their doors after failing to adapt to the digital age. Other recent examples include:
- Bed Bath & Beyond
- Tuesday Morning
- Party City (in some locations)
Brick-and-mortar stores that don’t evolve with technology, consumer behavior, and personalized shopping experiences risk extinction.
Lessons from Jo-Ann’s Closure:
- Digital transformation is essential.
- Customer experience must be top-tier.
- Adapting to trends like sustainability and DIY culture is key.
- Retailers must build loyal communities—not just transactions.
Final Thoughts: A Goodbye to a Crafting Giant
The Jo-Ann Stores liquidation is a bittersweet moment. For over 80 years, Jo-Ann helped Americans bring creativity to life—whether through handmade clothes, school projects, or holiday décor. The closures are a reminder that even beloved brands must innovate or fall behind.
As liquidation sales continue, shoppers have one final chance to walk through the aisles of Jo-Ann and grab supplies at steep discounts. For longtime fans, it’s also a chance to say goodbye.
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