Jo-Ann Stores
| Company type | Private (post-2024 bankruptcy) |
|---|---|
| Industry | Retail (fabrics and craft supplies) |
| Founded | 1943 in Cleveland, Ohio, United States |
| Founder | Hilda and Berthold Reich, Sigmund and Mathilda Rohrbach, Justin and Alma Zimmerman |
| Defunct | May 30, 2025 |
| Fate | Liquidation of stores; intellectual property acquired by Michaels in 2025 |
| Headquarters | Hudson , United States |
Area served | United States (49 states) |
Key people | Darrell Webb (former CEO), Jill Soltau (former CEO), Wade Miquelon (former CEO) |
| Products | Fabrics, craft supplies |
| Parent | GA Group (post-bankruptcy asset acquisition) |
Jo-Ann Stores, LLC (marketed as JOANN) was a specialty retail company in the United States, primarily dealing in fabrics and craft supplies. Based in Hudson, Ohio, it operated more than 800 outlets across 49 states until early 2025. After unsuccessful attempts to find a buyer, the company commenced liquidation of its stores in February 2025. By April, 255 outlets had ceased operations, with the remaining 535 closing permanently by May 30, 2025, ahead of the original schedule.
On June 5, the arts and crafts retailer Michaels acquired Joann’s intellectual property and private label brands but did not assume control of any physical store locations. Michaels intends to incorporate Joann's private labels into its existing retail locations and online channels, responding to a surge in fabric-related demand on its digital platform.
Founding
In 1943, German immigrant families—Hilda and Berthold Reich, Sigmund and Mathilda Rohrbach, and Justin and Alma Zimmerman—established the Cleveland Fabric Shop in Cleveland, Ohio. The business was renamed Jo-Ann Fabrics in 1963, drawing from the names of the founders’ daughters: Joan and Jacqueline Ann.
The company went public on the American Stock Exchange in 1969 under the name Fabri-Centers of America, Inc. Its first significant expansion occurred in 1994 with the acquisition of Cloth World, a southern chain boasting 342 stores, growing its total presence to 655 locations. In 1997, Fabri-Centers resolved federal allegations relating to earnings misstatements before a securities offering; CEO Alan D. Rosskamm, a descendant of the founders, also settled an administrative charge.
In 1998, Fabri-Centers purchased House of Fabrics (previously operating as Fabricland, Fabric King, So-Fro Fabrics) for $100 million. Later that year, it consolidated all stores under the unified brand Jo-Ann Stores Inc., adopting the Jo-Ann Fabrics name across its network.
Darrell Webb took on the roles of chairman and CEO in March 2006. On March 23, 2010, Jo-Ann Stores agreed to be acquired for $1.6 billion by private equity firm Leonard Green & Partners, resulting in its delisting from public markets by March 2011. Webb stepped down that same year; Travis Smith succeeded him as CEO until his departure in March 2014 when CFO Jim Kerr assumed interim leadership.
In March 2015, Jill Soltau was appointed president, CEO, and board member. During her tenure, she actively opposed President Trump's tariffs due to concerns about American manufacturers' ability to fulfill quality and volume requirements. Soltau joined other retail leaders in engaging with the administration on how tariffs affected consumer costs and business operations. In March 2018, the company rebranded as Joann to reflect a strategic shift toward expanding beyond fabric sales into a wider range of craft products.
Soltau exited her position in March 2018; Wade Miquelon became president, CEO, and board member in March 2019. That year saw Joann partner with GoldieBlox to launch a STEM-oriented subscription box targeting children eight years and older, aligning with efforts to diversify product offerings.
Impact of COVID-19 Pandemic
Prior to the COVID-19 outbreak, Joann reported a fiscal year 2019 loss amounting to $546.6 million. However, by fiscal year-end 2020, it achieved profits between $210.9 million and $212.9 million while gaining nine million new customers—a growth driven largely by mask mandates and heightened interest in do-it-yourself projects. In March 2021, Joann announced plans to open an e-commerce fulfillment center in West Jefferson, Ohio aimed at boosting online sales capabilities.
On March 16, 2021, Joann returned to public markets via an initial public offering on Nasdaq under the ticker symbol JOAN, raising $131 million. Leonard Green & Partners remained the majority shareholder with authority to appoint up to five board members.
Controversy over COVID-19 lockdown policies
Amid the pandemic, Jo-Ann encountered backlash for continuing store operations despite public health warnings and for not providing paid sick leave to employees affected by the virus. The company justified its operations by classifying itself as an "essential business," highlighting donations of free mask kits to medical facilities—although numerous hospitals rejected these homemade masks. After Jo-Ann sought exemption from stay-at-home mandates, Michigan’s governor ordered store closures, emphasizing that mask-making materials were accessible online without requiring physical store visits. The donated mask kits primarily included discounted fabric remnants, prompting some media outlets to describe the effort as distributing "clearance bin scraps."
Financial struggles and liquidation
In September 2023, Jo-Ann implemented layoffs targeting its administrative workforce. By October 2023, both Fitch Ratings and CreditRiskMonitor signaled that the company was approaching a possible Chapter 11 bankruptcy filing. That same month, Nasdaq issued a delisting warning after Jo-Ann’s share price dropped below $1 per share, threatening removal from the exchange unless the stock price improved.
Jo-Ann officially filed for Chapter 11 bankruptcy protection on March 18, 2024, with the objective of reducing debt by over $500 million and reorganizing as a private entity without disrupting employee positions or store operations. Trading of Jo-Ann shares was suspended on March 28, followed by formal delisting on April 9. The company’s restructuring plan received approval on April 25, enabling it to exit bankruptcy as a privately held firm.
Nevertheless, on January 15, 2025, Jo-Ann filed for Chapter 11 bankruptcy once more due to ongoing sales declines. The company intended to maintain open stores while cutting $500 million in debt. On February 12, 2025, Jo-Ann revealed intentions to shutter 500 of its roughly 800 locations to appropriately scale its presence, with major closures planned in California, Florida, Michigan, Ohio, and Pennsylvania.
By February 24, 2025, after unsuccessful attempts to sell the remaining stores, Jo-Ann announced plans to liquidate its last 300 outlets. GA Group, a private equity firm, acquired the company’s assets. The final stores ceased operations on May 30, 2025.
On June 5, 2025, arts and crafts retailer Michaels purchased Jo-Ann’s intellectual property and private label brands but did not acquire any physical store locations. Michaels intends to broaden its product assortment by incorporating Jo-Ann’s private labels into both its brick-and-mortar sites and e-commerce platforms in response to heightened fabric demand online.
See also
External links
- Official website (Archive)
- Corporate Profile at Bloomberg News