Have you ever wondered how a beloved craft store, once a household name, could take such a steep dive into bankruptcy? My mind often drifts to the story of Joann Fabrics—a name that resonates with anyone who’s spent an afternoon sifting through bolts of fabric or the aisles of glittery craft supplies. The tale of Joann Fabrics is a rich tapestry of nostalgia mixed with cautionary lessons about market dynamics, management decisions, and shifting consumer behaviors. It’s astonishing how quickly the winds can change in retail.
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A Beloved Institution
Walking into a Joann store feels like coming home for many crafters, artists, and DIY enthusiasts. From the faint scent of cotton to the kaleidoscope of colors splashed across the walls, the environment is comforting. But as I strolled through the aisles of a Joann Fabrics store just north of New York City recently, I couldn’t shake the feeling of impending doom. Everything was on sale, a desperate attempt to clear out inventory. Shopping carts filled with bolts of tulle, fleece, and cotton piled high under the weight of uncertainty. The jovial atmosphere I once remembered had morphed into a somber echo of what it had been.
I overheard conversations between shoppers, and one young woman lamented, “It’s a bummer,” echoing the feelings of so many who had enjoyed crafting with family and friends at Joann.
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From Golden Days to Dark Times
Last month, Joann announced it would close all of its more than 800 U.S. stores and lay off around 19,000 employees during its second bankruptcy in less than a year. Did I feel shocked? Absolutely. This was a company that had become a cornerstone of American shopping for generations. Joann was more than just a retail chain; it was a cultural phenomenon that fostered creativity.
The emotional farewells from employees and loyal customers flooded social media in heartfelt tributes. I watched videos of staff members tearing up as they reminisced about lunch hours spent crocheting together. Customers enthusiastically shared memories of crafting alongside their mothers and cherished Saturday afternoons in the store. Some posted farewell videos, showcasing empty shelves while melancholic pop songs played in the background, giving a sense of the grief that permeated the air.
One TikTok user summed it up perfectly, sobbing, “Joann is f—ing closing,” making it clear that losing such a beloved institution felt like a personal loss.
Unraveling the Mystery of Its Demise
As I browsed through countless articles discussing the downfall, it became evident that many were grappling with the same question: How did Joann go from being a retail darling to facing a descent into bankruptcy?
In the late 1990s, Joann was the largest craft brand in the U.S., a position that, ironically, proved precarious. Between 2021 and 2024, it lost a staggering 99% of its value. Diana McDonough, a long-time fan and member of the Ohio Valley Quilting Guild, summed it up well when she expressed her bewilderment: “I’m baffled as to how they managed to fail.”
In a statement from Joann when filing for bankruptcy, they cited “significant and lasting challenges in the retail environment,” as well as a “financial position and constrained inventory levels” as contributing factors to their demise.
The Debt That Brought Them Down
Whispers in business circles largely pointed fingers at Leonard Green & Partners, a private equity firm that acquired Joann in a $1.6 billion buyout in 2011. The debt incurred from this transaction burdened the company substantially. Some observers, however, suggest that the debt alone doesn’t encapsulate the complexities surrounding Joann’s decline. They point to mismanagement, staffing errors, an inability to respond to intense competition, a revolving door of leadership, and a sense of overconfidence ignited by the pandemic boom.
Alan Porter, a former district manager at Joann, fittingly remarked, “They really did this to themselves. Because the business is there.”
The Roots of Joann Fabrics
Tracing back to its early days, Joann’s origin story is cordial and somewhat humble. Founded in 1945 by two German immigrant families in Cleveland, the fabric store initially went by Cleveland Fabric Shop before adopting the name Joann—derived from Joan and Jacqueline Ann, the daughters of the founders. Within a few decades, Joann had reached 18 locations and went public in 1969.
Sewing was once a vital skill passed down through generations, with many women learning the trade at home. I can’t help but think how sewing has climbed down the priority ladder for many. Today, the craft is often pursued as a leisure activity rather than a necessity. As Lori Kendall, a senior lecturer at Ohio State University, noted, “How many young women are leaving college and their college graduation gift is a sewing machine?”
Alongside these shifting cultural attitudes toward sewing, the explosive rise of e-commerce and big-box retailers like Amazon and Walmart proved unrelenting. They shifted the landscape heavily against smaller entities like Joann, creating a “double whammy” scenario.
Leadership Changes and Mixed Messages
Entering the 21st century, Joann was still a family-run business but was experiencing turbulence. Hired in 2006, Darrell Webb was the company’s first non-family CEO. This seasoned executive sought to turn things around as Joann grappled with uneven sales and excessive inventory. His contributions brought discipline and a much-needed revitalization.
Under Webb’s leadership, I learned that Joann got back to its roots, emphasizing its primary audience: the crafters. However, after accepting the buyout from Leonard Green in 2011, Webb stepped down, and soon the company would face a cascade of leadership changes that would disrupt the cultural ethos that had been lovingly sewn into its fabric.
Between 2011 and 2023, nine executives filled the CEO position, transitioning from family leadership to professional management styles that often clashed with the store’s mission. At its core, the decision-making process seemed to reflect a disconnect from the community of crafters and hobbyists, and that became detrimental.
The arrival of Jill Soltau as CEO marked a significant shift. Although she was qualified, she lacked experience in craft retail and opted to hire consultants from McKinsey to restructure the workforce. The subsequent layoffs led to a painful fragmentation of the cultural atmosphere that had once made Joann feel like a home away from home for its customers.
Customer Experience Takes a Hit
Staffing decisions during the 2010s further magnified the problems plaguing Joann. With a growing focus on reducing labor costs, the team found itself stretched too thin to meet customer demands. In a customer-heavy business like retail—particularly one that requires personalized service—this was a red flag.
In an encounter at the cutting counter, customers expecting help with their fabric often faced daunting wait times. Former employees noted that with fewer staff around, the once-invaluable conversations about projects and suggestions dwindled away, diminishing the welcoming atmosphere.
As I reflect on my experiences, I remember those moments spent chatting about a sewing project while waiting for my fabric to be cut. The knowledge and passion of the workers were a part of the Joann experience that I cherished deeply.
Competition Gets Fierce
As if the challenges from within weren’t enough, the competitive landscape shifted significantly when Hobby Lobby ventured into the market. Though a regional player for decades, Hobby Lobby’s rise as a national brand caught Joann off guard. With fewer financial pressures, a different business model, and a broad selection that appealed to DIY enthusiasts, Hobby Lobby quickly attracted a segment of Joann’s customer base.
I can’t help but think about how this competition pushed Joann to respond aggressively, leading to further cost-cutting methods that negatively impacted customer experiences. It was a vicious cycle: by trying to regain its footing, Joann inevitably lost ground.
A Fickle Pandemic Boom
Just when it seemed like Joann’s fortunes might begin to turn around in 2020, an unexpected surge in business occurred. During the COVID-19 lockdowns, I remember picking up sewing again, and it appeared that many others rediscovered their love for crafting as well. Joann’s revenues spiked and reached $1.9 billion in those initial months of lockdown—a silver lining many didn’t see coming.
Joann began attracting not only hobbyists but also small businesses and sellers who turned to DIY projects as side hustles. With attendance and revenue soaring, Leonard Green sought to capitalize on the opportunity, pushing for a public offering that raised $131 million while retaining majority ownership.
Yet, as quickly as this boom arrived, it began to wane. Just a year later, sales dipped significantly as interest in crafting waned, and the company fell deeper into financial trouble. With its share price dropping below a dollar in 2024, this unfortunate trajectory forced Joann into its first bankruptcy that April.
A Cautionary Tale
The decline of Joann is a reminder of how quickly circumstances can change. Retail is often fickle, fueled by consumer interests that can be volatile. Going from a cherished institution that fostered creativity to a cautionary tale of bankruptcy encapsulates multiple lessons about business leadership, market dynamics, and changing cultural interests.
I find myself mourning the loss not just of Joann as a retail chain but of the community it represented—a shared space where creativity blossomed, and memories were crafted. This downfall seems all the more poignant as I imagine generations of crafters who grew-up alongside this store; it served as a backdrop for countless stories, art projects, and family traditions.
Ultimately, navigating today’s retail landscape requires more than just maintaining a loyal customer base. It asks for an understanding of shifting consumer behaviors and how to adapt to them effectively, creating an enduring bond between the brand and its audience.
In the end, Joann might not just be a name on a storefront, but a metaphor for the fragility of business—a tapestry woven with stories of both triumph and loss. While the fabric of Joann may be fraying, I hold onto the hope that the spirit of crafting, creativity, and community will always find a way to endure and thrive, even in the face of adversity.
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