JoAnn Fabrics
| Company type | Private (post-bankruptcy), formerly public |
|---|---|
| Industry | Retail (fabrics and arts and crafts) |
| Predecessor | Cleveland Fabric Shop |
| Founded | 1943 in Cleveland, Ohio, U.S. |
| Founder | Hilda and Berthold Reich, Sigmund and Mathilda Rohrbach, Justin and Alma Zimmerman |
| Defunct | 2025 |
| Fate | Liquidation; intellectual property acquired by Michaels |
| Headquarters | Hudson, Ohio , United States |
Area served | United States (49 states) |
Key people | Darrell Webb (former CEO), Jill Soltau (former CEO), Wade Miquelon (former CEO) |
| Products | Fabrics, arts and crafts materials |
| Parent | Leonard Green & Partners (until bankruptcy) |
Jo-Ann Stores, LLC (marketed as JOANN) was a U.S.-based specialty retailer concentrating on fabrics and arts and crafts materials. With its headquarters located in Hudson, Ohio, the company managed over 800 outlets in 49 states until early 2025. Unable to find a purchaser, it initiated the process of closing all stores starting February 2025.<ref>By April, 255 stores had shut down, with the remaining 535 locations closing permanently by May 30, 2025,<ref> one day earlier than initially planned.
On June 5, the arts and crafts chain Michaels acquired Joann’s intellectual property and private label brands, excluding the physical retail locations. Michaels intends to broaden its product offerings by incorporating Joann's private label lines into both its brick-and-mortar stores and online platforms, responding to a rise in fabric-related searches on its website.<ref>
Founding
The Cleveland Fabric Shop was established in 1943 in Cleveland, Ohio by German immigrant couples Hilda and Berthold Reich, Sigmund and Mathilda Rohrbach, along with Justin and Alma Zimmerman. Following growth, the business was renamed Jo-Ann Fabrics in 1963, inspired by the founders’ daughters' names Joan and Jacqueline Ann.
In 1969, Jo-Ann Fabrics went public on the American Stock Exchange under the name Fabri-Centers of America, Inc. The company’s first significant acquisition occurred in 1994 with Cloth World, a southern chain consisting of 342 stores; at that time, Fabri-Centers operated a total of 655 outlets.
In 1997, Fabri-Centers resolved federal allegations concerning earnings overstatements before a securities offering by paying $3.3 million. CEO Alan D. Rosskamm also settled related charges.
The acquisition of House of Fabrics (previously known as Fabricland, Fabric King, So-Fro Fabrics) took place in 1998. That September marked the rebranding to Jo-Ann Stores Inc., standardizing all stores under the Jo-Ann Fabrics name.
Darrell Webb assumed the roles of chairman and CEO in March 2006.
In March 2010, private equity firm Leonard Green & Partners agreed to purchase Jo-Ann Stores for $1.6 billion; following this deal, the company was removed from public trading in March 2011. Webb resigned during that year; Travis Smith took over as CEO but stepped down in March 2014. CFO Jim Kerr served as interim CEO until a permanent replacement was appointed.
Jill Soltau became president and CEO in March 2015. During her tenure, Jo-Ann opposed tariffs imposed under President Trump’s administration, arguing that domestic manufacturers could not meet required quality or volume standards. Soltau joined other retail leaders in engaging with government officials to discuss how tariffs affected consumer prices and business operations.
In March 2018, Jo-Ann Stores shortened its name to Joann to reflect an expansion beyond fabric products into a wider range of crafts.
Soltau left her position in March 2018; Wade Miquelon was named president, CEO, and board member in March 2019.
That same year, Joann collaborated with GoldieBlox to introduce the GoldieBlox Box subscription service designed to foster STEM skills development for children aged eight and older.
Impact of COVID-19 pandemic
Prior to the COVID-19 pandemic, the retailer reported a fiscal year 2019 loss amounting to $546.6 million. However, by fiscal year-end 2020, Jo-Ann achieved profitability with earnings between $210.9 million and $212.9 million and attracted nine million new customers—trends driven by mask mandates and increased interest in DIY crafts. In March 2021, plans were announced for a new e-commerce distribution center in West Jefferson, Ohio to enhance online order fulfillment.
On March 16, 2021, Jo-Ann returned to public markets through an initial public offering on the Nasdaq stock exchange under the ticker symbol JOAN. Leonard Green & Partners maintained majority control and retained the right to appoint up to five members to the board of directors.
Controversy Over COVID-19 Lockdown Measures
Throughout the pandemic, Jo-Ann encountered backlash for continuing operations despite public health concerns and for denying paid sick leave to employees impacted by the virus. The company justified its decision by classifying itself as an "essential business," highlighting its donation of complimentary mask kits to medical facilities, although numerous hospitals declined these homemade masks.
After Jo-Ann sought exemption from state stay-at-home mandates, Michigan Governor Gretchen Whitmer mandated store closures, emphasizing that mask-making supplies could be purchased online without in-person interaction. It later emerged that the free mask kits contained leftover materials frequently sold at discounted prices, prompting some media to describe the initiative as distributing "clearance bin scraps."
Financial Distress and Liquidation
In September 2023, Jo-Ann announced reductions among its administrative workforce. By October 2023, assessments from Fitch Ratings and CreditRiskMonitor signaled that Jo-Ann 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, threatening removal from the exchange if the price failed to rebound.
Jo-Ann filed for Chapter 11 bankruptcy protection on March 18, 2024, with plans to eliminate over $500 million in debt and reorganize as a private entity without impacting store operations or employment. Nasdaq suspended trading on March 28, and the company was officially delisted on April 9. A federal judge approved the restructuring plan on April 25, permitting Jo-Ann to exit bankruptcy as a privately held company.
On January 15, 2025, Jo-Ann filed for Chapter 11 bankruptcy protection once more due to ongoing declines in sales. Throughout this procedure, stores remained operational while the company aimed to reduce debt by $500 million. On February 12, 2025, Jo-Ann revealed intentions to shutter 500 out of its remaining 800 outlets as part of a strategy to "right-size" its retail presence, with numerous closures planned in California, Florida, Michigan, Ohio, and Pennsylvania.
By February 24, 2025, after unsuccessful attempts to sell the remaining stores, Jo-Ann declared it would liquidate the last 300 locations. Its assets were acquired by GA Group, a private equity firm. 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 integrate Jo-Ann’s private label products into its own online and in-store selections in response to growing consumer interest in fabric-related merchandise on its platform.