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Fabricland

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Adapted from the English Wikipedia article Fabricland, 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
PredecessorCleveland Fabric Shop
Founded1943 in Cleveland, Ohio, U.S.
FounderHilda and Berthold Reich, Sigmund and Mathilda Rohrbach, Justin and Alma Zimmerman
DefunctMay 30, 2025 (2025-05-30)
FateLiquidation; intellectual property acquired by Michaels
SuccessorIntellectual 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
ParentLeonard Green & Partners (until 2024 bankruptcy), GA Group (post-2025 asset acquisition)
Websitearchived%20official%20website

Overview

Jo-Ann Stores, LLC, marketed 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, the business initiated full liquidation of its locations starting in late February 2025.[1] By the close of April, 255 stores had been permanently shut down, with the remaining 535 outlets closing their doors by May 30, 2025,[2] one day ahead of the originally scheduled timeline.[3]

On June 5, it was disclosed that the arts and crafts giant Michaels had purchased Joann’s intellectual property rights and private label brands; however, no physical store locations were included in the acquisition. Michaels plans to broaden its product assortment by incorporating Joann’s private label items into both its brick-and-mortar outlets 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 location in Henderson, Nevada as seen 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, the business rebranded as Jo-Ann Fabrics in 1963. The new name was derived by merging the first names of the daughters from both founding families: Joan and Jacqueline Ann.

In 1969, Jo-Ann Fabrics became a publicly traded company on the American Stock Exchange under the corporate title Fabri-Centers of America, Inc.. The company's first major acquisition occurred in 1994 with the purchase of Cloth World, a southern chain consisting of 342 stores. At that point, Fabri-Centers operated a total of 655 locations.

In 1997, Fabri-Centers resolved federal allegations by agreeing to pay $3.3 million related to misleading investors in 1992 through inflated earnings reports prior to selling securities. Alan D. Rosskamm, CEO and grandson of founders Hilda and Berthold Reich, also settled an associated administrative complaint.

The company continued expanding by acquiring House of Fabrics (previously known as Fabricland, Fabric King, and So-Fro Fabrics) in 1998. Later that year, in September, Fabri-Centers officially changed its corporate name to Jo-Ann Stores Inc., and all retail outlets adopted the Jo-Ann Fabrics branding.

Darrell Webb assumed the roles of chairman and CEO at Jo-Ann Fabrics 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 the stock exchange in March 2011. Darrell Webb stepped down from his position in March 2011, with Travis Smith—who had joined the firm in March 2006—being promoted to CEO. Smith later resigned in March 2014, after which CFO Jim Kerr took over as interim CEO until a permanent successor was appointed.

In March 2015, Jo-Ann Stores appointed Jill Soltau as president, CEO, and board member. During Soltau's tenure, the company publicly opposed tariffs implemented under President Donald Trump’s administration, arguing that domestic manufacturers could not match Jo-Ann’s quality standards or volume requirements. Soltau joined seven other retail CEOs in discussions with the administration to express concerns about tariff-induced price increases for consumers and negative impacts on business operations. In March 2018, Jo-Ann Stores underwent a rebranding effort to become simply Joann, reflecting an expanded focus beyond fabrics to include a broader range of crafting supplies.

Soltau departed from the company in March 2018. A year later, in March 2019, Wade Miquelon was named president, CEO, and board member.

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

COVID-19 pandemic

Before the outbreak 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 recorded earnings between $210.9 million and $212.9 million, alongside gaining 9 million additional customers. This surge in revenue has been linked to mask mandates and a heightened enthusiasm for DIY projects. In March 2021, the retailer announced intentions to establish an e-commerce distribution center in West Jefferson, Ohio, aimed at enhancing its online sales operations.

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

COVID-19 lockdown controversy

Throughout the COVID-19 crisis, Jo-Ann faced public backlash for keeping numerous outlets operational despite health concerns for older patrons and for not providing paid sick leave to employees impacted by COVID-19. The company defended its stance by highlighting that its complimentary mask kits supported local hospitals, which contributed to its classification as an "essential business," even though several hospitals declined homemade masks. In Michigan, Governor Gretchen Whitmer mandated store closures after Jo-Ann requested exemption from stay-at-home directives, emphasizing that mask-making supplies could be sold online without requiring physical store visits. It was later revealed that most materials included in the free mask kits were remnants, commonly sold by Jo-Ann at discounted prices, prompting some media outlets to criticize the initiative as merely distributing "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, Fitch Ratings and CreditRiskMonitor indicated that Joann was on the verge of potentially filing for Chapter 11 bankruptcy.[7] That same month, Nasdaq issued a delisting warning to Joann after its stock price dropped below $1 per share. The company was informed that failure to raise its share price to at least $1 would result in removal from the Nasdaq exchange.[8]

Jo-Ann officially filed for Chapter 11 bankruptcy protection on March 18, 2024.[9] The restructuring plan aimed to reduce debt by more than $500 million and transition Jo-Ann into a privately held entity. Management intended to finalize the bankruptcy process by late April without impacting employees or store operations.[10] Trading of the company's shares was suspended by Nasdaq on March 28, followed by formal delisting on April 9.[11][12] A federal judge approved the company's reorganization blueprint on April 25, enabling Jo-Ann to emerge from bankruptcy as a private firm.[13]

On January 15, 2025, less than a year later, Joann initiated a second Chapter 11 bankruptcy filing.[14] The company attributed this subsequent filing to ongoing declines in sales performance. Throughout this process, stores were expected to continue operating while management sought to reduce debt by $500 million.[15][16]

On February 12, 2025, Joann declared plans to shutter approximately 500 of its remaining roughly 800 outlets as part of an initiative to "right-size" its store network.[17] Among these closures, California accounted for 61 locations, while Florida, Michigan, Ohio, and Pennsylvania each faced shutdowns exceeding thirty stores.[18] On February 24, it was announced that after failing to secure a buyer for the remaining approximately 300 stores, Joann would proceed with liquidating these locations. The firm's assets were acquired by GA Group, a private equity company.[19] The final Jo-Ann outlets ceased operations on May 30, 2025.[2]

Shortly after the last store closure on June 5, 2025, it was disclosed that arts and crafts retailer Michaels had purchased Joann's intellectual property and private label brands but did not acquire any physical store locations. Michaels intends to broaden its product offerings by integrating Joann's private labels into both its brick-and-mortar stores and online platform in the upcoming months. This strategic move was influenced by a notable rise in fabric-related searches on Michaels' website.[4][5]

See also

References

  1. ↑ Hernandez, Joe (February 25, 2025). "Fabric giant Joann is going out of business and closing all of its 800 stores". NPR.
  2. ↑ 2.0 2.1 Cite error: Invalid <ref> tag; no text was provided for refs named fastcompany
  3. ↑ Snider, Mike (April 25, 2025). "255 Joann stores close by end of April: See list of locations, closing dates". USA Today.
  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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