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Fabric King

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Adapted from the English Wikipedia article Fabric King, available under CC BY-SA 4.0Updated 9 August 202519 sources
Jo-Ann Stores, LLC
Company typePrivate (post-2024 bankruptcy), formerly Public (1969–2011, 2021–2024)
IndustryRetail (fabrics and arts and crafts)
PredecessorCleveland Fabric Shop
Founded1943 in Cleveland, Ohio, United States
FounderHilda and Berthold Reich, Sigmund and Mathilda Rohrbach, Justin and Alma Zimmerman
DefunctMay 30, 2025 (2025-05-30)
FateLiquidation of stores; intellectual property acquired by Michaels
Headquarters
Hudson
,
United States
Area served
United States (49 states)
Key people
Darrell Webb (former CEO), Jill Soltau (former CEO), Wade Miquelon (former CEO)
ProductsFabrics, arts and crafts merchandise
OwnerLeonard Green & Partners (majority owner until 2024 bankruptcy), GA Group (private equity firm, acquired assets in 2025)

Overview

Jo-Ann Stores, LLC, commonly branded as JOANN, was a U.S.-based specialty retailer focusing on fabrics and arts and crafts merchandise. Headquartered in Hudson, Ohio, the company operated more than 800 outlets across 49 states until early 2025. After unsuccessful attempts to find a buyer, Jo-Ann initiated the liquidation of all its locations starting in late February 2025. By the conclusion of April, 255 stores had closed permanently, with the remaining 535 outlets ceasing operations by May 30, 2025—one day ahead of the originally scheduled shutdown.[1][2][3]

On June 5, it was disclosed that the arts and crafts chain Michaels acquired Joann’s intellectual property rights and private label brands but did not take over any physical store locations. Michaels plans to broaden its product assortment by incorporating Joann’s private label items into both its brick-and-mortar stores and e-commerce platform in the near future. This strategic move was influenced by a notable rise in fabric-related searches on Michaels’ website.[4][5]

Origin

A former Jo-Ann store located in Henderson, Nevada, pictured in 2008

The Cleveland Fabric Shop was established in 1943 in Cleveland, Ohio, by German immigrant families: Hilda and Berthold Reich, Sigmund and Mathilda Rohrbach, along with Justin and Alma Zimmerman. Following growth and expansion, the business rebranded as Jo-Ann Fabrics in 1963, a name derived by merging the daughters’ names from the founding families—Joan and Jacqueline Ann.

In 1969, Jo-Ann Fabrics went public, trading on the American Stock Exchange under the corporate title Fabri-Centers of America, Inc. The company's initial acquisition came in 1994 with the purchase of Cloth World, a southern chain operating 342 stores; at that time, Fabri-Centers managed a total of 655 locations.

In 1997, Fabri-Centers agreed to pay $3.3 million to resolve federal allegations that it had misrepresented earnings in 1992 prior to a securities sale. Alan D. Rosskamm, CEO and grandson of founders Hilda and Berthold Reich, also settled a related administrative claim.

The following year, Fabri-Centers expanded further by acquiring House of Fabrics, formerly known under various names including Fabricland, Fabric King, and So-Fro Fabrics. In September 1998, the company adopted the name Jo-Ann Stores Inc., standardizing all outlets under the Jo-Ann Fabrics brand.

Darrell Webb took on the roles of chairman and CEO in March 2006.

On March 23, 2010, Jo-Ann Stores announced its intention to be acquired by private equity firm Leonard Green & Partners for $1.6 billion; subsequently, the company was removed from public trading in March 2011. Webb stepped down as CEO in March 2011, with Travis Smith—who had joined in March 2006—assuming the position. Smith resigned in March 2014, after which CFO Jim Kerr temporarily filled the CEO role until a permanent successor was appointed.

In March 2015, Jill Soltau was appointed as president, CEO, and board member of Jo-Ann Stores. During her tenure, she actively opposed tariffs imposed under President Donald Trump’s administration, arguing that domestic manufacturers could not fulfill Jo-Ann’s standards for quality or volume. Soltau participated alongside seven other retail CEOs in discussions with the administration regarding how these tariffs would increase consumer costs and negatively impact businesses. In March 2018, the company rebranded itself as Joann to broaden its identity beyond fabrics and embrace a wider range of crafting products.

Soltau departed from Jo-Ann Stores in March 2018. A year later, in March 2019, Wade Miquelon was named president, CEO, and joined the board of directors.

Also in March 2019, Joann collaborated with GoldieBlox to launch the GoldieBlox Box—a monthly subscription service aimed at children aged eight and older to promote STEM skill development.

COVID-19 pandemic

Before the onset of the COVID-19 pandemic, the company reported a loss of $546.6 million during its 2019 fiscal year. Contrastingly, by the conclusion of fiscal year 2020, Jo-Ann achieved earnings between $210.9 million and $212.9 million, alongside attracting an additional 9 million customers. This surge in revenue has been attributed to mask-wearing mandates and a heightened consumer focus on do-it-yourself projects. In March 2021, Jo-Ann announced plans to establish an e-commerce center in West Jefferson, Ohio, aiming to enhance its online sales capabilities.

On March 16, 2021, Jo-Ann debuted on the Nasdaq stock market with the ticker symbol JOAN. Leonard Green & Partners maintained majority ownership, which granted them the authority to appoint as many as five directors to the company's board.

COVID-19 lockdown controversy

Throughout the pandemic, Jo-Ann faced public backlash for keeping numerous stores operational despite health concerns for senior customers and for not providing paid sick leave to employees impacted by COVID-19. The company defended its decision by highlighting its distribution of free mask kits to local hospitals, a factor that qualified their stores as "essential businesses." However, many hospitals declined the homemade masks. In Michigan, Governor Gretchen Whitmer mandated store closures after Jo-Ann requested exemption from stay-at-home orders, emphasizing that mask-making supplies could be sold through online channels without requiring physical store visits. Further scrutiny revealed that most components in the free mask kits were remnants—materials typically sold at discounted prices by Jo-Ann—leading some media sources to criticize the program as merely offering "scraps from the clearance bin."

Bankruptcies and liquidation

A Joann store displaying a going out of business sign in Oklahoma City.

In September 2023, Jo-Ann revealed plans to reduce its administrative workforce by an undisclosed number.[6] By October 2023, both Fitch Ratings and CreditRiskMonitor indicated that Joann was approaching a possible Chapter 11 bankruptcy filing.[7] During the same month, Nasdaq issued a delisting warning to Joann after its stock price dropped below $1 per share, stating that failure to raise the share price above $1 would result in removal from the exchange.[8]

On March 18, 2024, Jo-Ann officially filed for Chapter 11 bankruptcy protection.[9] The company aimed to reduce its debt by over $500 million and restructure into a privately owned entity. The filing was expected to be finalized by late April without impacting employees or store operations.[10] Trading of Jo-Ann shares was suspended by Nasdaq on March 28, and the company was formally removed from the exchange on April 9.[11][12] A federal judge approved the company’s reorganization plan on April 25, allowing Jo-Ann to exit bankruptcy as a private firm.[13]

Less than a year later, on January 15, 2025, Joann once again sought Chapter 11 bankruptcy protection.[14] The company attributed this second filing to ongoing sales declines. Throughout the process, stores were expected to remain operational while the business worked on reducing its debt by approximately $500 million.[15][16]

On February 12, 2025, Joann declared it would close approximately 500 of its remaining roughly 800 stores as part of an effort to "right-size" its retail presence.[17] Of these closures, California accounted for 61 locations, while Florida, Michigan, Ohio, and Pennsylvania each saw more than thirty stores shuttered.[18] On February 24, it was announced that after failing to secure a buyer for the remaining stores, Joann would liquidate its last approximately 300 locations. Its assets were acquired by GA Group, a private equity firm.[19] The final Jo-Ann outlets ceased operations on May 30, 2025.[1]

Shortly after the last store closure on June 5, it was disclosed that arts and crafts retailer Michaels had purchased Joann’s intellectual property rights and private label brands but did not acquire any physical retail locations. Michaels plans to broaden its product offerings by integrating Joann’s private label merchandise into its own stores and online platform in the upcoming months. This decision was influenced by a notable rise in fabric-related searches on Michaels’ website.[4][5]

See also

References

  1. ↑ 1.0 1.1 Cite error: Invalid <ref> tag; no text was provided for refs named fastcompany
  2. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named npr
  3. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named usatoday
  4. ↑ 4.0 4.1 Howland, Daphne (June 5, 2025). "Joann's future a mystery as Michaels snaps up IP, private labels". Retail Dive.
  5. ↑ 5.0 5.1 Valinsky, Jordan (June 5, 2025). "Michaels is expanding its fabric selection following Joann's collapse". CNN.
  6. ↑ Marotta, Eric (September 13, 2023). "Joann Fabrics to lay off workers at Hudson headquarters". Akron Beacon Journal. Retrieved September 16, 2023.
  7. ↑ Salpini, Cara (October 2, 2023). "11 retailers at risk of bankruptcy in 2023". Retail Dive. Retrieved October 3, 2023.
  8. ↑ Suttell, Scott (November 1, 2023). "Nasdaq sends delisting notice to Joann". Crain's Cleveland Business. Retrieved November 4, 2023.
  9. ↑ "Voluntary Petition for Non-Individuals Filing for Bankruptcy" (PDF). Docket of JOANN, Inc. (Initial bankruptcy filing, entered as Doc. 1 of case Case No. 24-1018). Kroll. 18 March 2024. Retrieved 17 May 2024.
  10. ↑ Clanton, Alicia; Phakdeetham, Janine (March 18, 2024). "Crafts Firm Joann Files for Bankruptcy as Consumers Retreat". Bloomberg. Retrieved March 18, 2024.
  11. ↑ "Form 3 - Initial statement of beneficial ownership of securities". U.S. Securities and Exchange Commission. 15 March 2024. Retrieved 17 April 2024.
  12. ↑ "Form 25-NSE - Notification filed by national security exchange to report the removal from listing and registration of matured, redeemed or retired securities". U.S. Securities and Exchange Commission. 17 May 2024.
  13. ↑ Garrett, Amanda (April 25, 2024). "Hudson-based Joann to emerge from bankruptcy as private company; all stores will stay open". Akron Beacon Journal. Retrieved April 25, 2024.
  14. ↑ Knauth, Dietrich (January 15, 2025). "Craft retailer Joann files for bankruptcy for second time in a year". Reuters. Retrieved 2025-01-21.
  15. ↑ Randles, Jonathan (January 15, 2025). "Crafts Retailer Joann Files Second Bankruptcy in A Year". Bloomberg. Retrieved January 15, 2025.
  16. ↑ "JOANN INC. Bankruptcy Filing". bankruptcyobserver.com. Retrieved 2025-01-21.
  17. ↑ Valinsky, Jordan (February 12, 2025). "Joann, the bankrupt fabrics retailer, is closing 500 of its 800 stores". CNN. Retrieved February 12, 2025.
  18. ↑ Walrath-Holdridge, Mary; Sergent, Jim (February 12, 2025). "Joann closing 500 fabric and craft stores in 49 states: Search full list of closures". USA TODAY. Retrieved 2025-02-12.
  19. ↑ Knauth, Dietrich (February 24, 2025). "Bankrupt crafts retailer Joann closing all stores". Reuters. Retrieved February 24, 2025.

External links

Template:Leonard Green

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