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So-Fro Fabrics

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Adapted from the English Wikipedia article So-Fro Fabrics, available under CC BY-SA 4.0Updated 9 August 202517 sources
Jo-Ann Stores, LLC
Company typePrivate (post-2024 bankruptcy), formerly Public
IndustryRetail (arts and crafts, fabrics)
PredecessorCleveland Fabric Shop
FoundedJanuary 1, 1943; 83 years ago (1943-01-01) 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 all stores; intellectual property acquired by Michaels
Headquarters
Hudson
,
United States
Area served
United States (49 states)
Key people
Darrell Webb (former chairman and CEO), Travis Smith (former CEO), Jill Soltau (former CEO), Wade Miquelon (former CEO)
ProductsFabrics, arts and crafts materials
ParentLeonard Green & Partners (until 2024 bankruptcy), GA Group (post-2025 asset acquisition)

Overview

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

On June 5, it was announced that Michaels had purchased Joann’s intellectual property and private label brands, although this acquisition did not include any physical retail locations. Michaels intends to broaden its product range by integrating Joann's private labels into its own 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.

Origin

A Jo-Ann store 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. The new name was derived by blending the first names of the daughters from both founding families—Joan and Jacqueline Ann.

In 1969, Jo-Ann Fabrics transitioned to a publicly traded company on the American Stock Exchange under the corporate title Fabri-Centers of America, Inc.. The company's initial acquisition occurred in 1994 with the purchase of Cloth World, a southern retailer operating 342 stores. At that time, Fabri-Centers managed a total of 655 locations.

In 1997, Fabri-Centers agreed to a $3.3 million settlement concerning federal allegations that it had misrepresented its earnings in 1992 prior to a securities sale. Alan D. Rosskamm, CEO and grandson of founders Hilda and Berthold Reich, resolved an associated administrative complaint.

The following year, Fabri-Centers acquired House of Fabrics, which had previously operated under various names including Fabricland, Fabric King, and So-Fro Fabrics. In September 1998, the company adopted the name Jo-Ann Stores Inc., unifying all its outlets under the Jo-Ann Fabrics brand.

Darrell Webb assumed the roles of chairman and CEO of Jo-Ann Fabrics in March 2006.

On March 23, 2010, Jo-Ann Stores revealed plans to be acquired by private equity firm Leonard Green & Partners for $1.6 billion, leading to its removal from the stock exchange in March 2011. Webb resigned later that month, with Travis Smith—who had joined the company in March 2006—being promoted to CEO. Smith stepped down 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 her tenure, Soltau actively opposed President Donald Trump's tariffs on imports, arguing that domestic manufacturers could not fulfill Jo-Ann's quality or volume requirements. She participated in a meeting alongside seven other retail CEOs with the administration to discuss concerns that tariffs would increase consumer costs and negatively impact businesses. In March 2018, the company rebranded itself as Joann to reflect an expanded focus beyond fabrics into a broader craft market.

Soltau departed from Jo-Ann Stores in March 2018. Subsequently, Wade Miquelon was named president, CEO, and board member in March 2019.

That same month, Joann launched a partnership with GoldieBlox, introducing the GoldieBlox Box—a monthly subscription service aimed at children aged eight and older designed to foster STEM learning skills.

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, the retailer achieved earnings ranging from $210.9 million to $212.9 million and attracted an additional 9 million customers. This growth in revenue is attributed to mask mandates and a surge in consumer interest in do-it-yourself activities. In March 2021, Jo-Ann announced plans 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 of the company, which enabled them to appoint up to five members to the board of directors.

COVID-19 lockdown controversy

Throughout the COVID-19 crisis, Jo-Ann faced public backlash for keeping numerous stores operational despite health concerns for elderly patrons and for not providing paid sick leave to employees impacted by COVID-19. The company responded by highlighting its distribution of free mask kits to local hospitals, which supported its classification as an "essential business," although many hospitals declined to accept homemade masks. In Michigan, Governor Gretchen Whitmer ordered store closures after Jo-Ann requested exemption from stay-at-home mandates. Whitmer emphasized that materials used for mask-making could be sold online without requiring physical store visits. Subsequent reports revealed that most components included in the free mask kits were remnants, commonly sold by Jo-Ann at discounted prices, prompting some media sources to criticize the initiative as merely "scraps from the clearance bin."

Bankruptcies and liquidation

A Joann outlet 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.[1] By October 2023, reports from Fitch Ratings and CreditRiskMonitor indicated that Joann was approaching a possible Chapter 11 bankruptcy filing.[2] During the same month, Nasdaq issued a delisting warning as Joann’s stock price dropped below $1 per share, stating that failure to raise the share price above $1 would result in removal from the exchange.[3]

On March 18, 2024, Jo-Ann officially filed for Chapter 11 bankruptcy protection.[4] The company aimed to reduce debt by more than $500 million and transition into a privately owned entity. The restructuring was expected to conclude by late April without impacting employees or store operations.[5] Trading of Jo-Ann’s stock was suspended by Nasdaq on March 28, followed by formal delisting on April 9.[6][7] A federal judge approved the company’s reorganization plan on April 25, allowing Jo-Ann to exit bankruptcy as a private firm.[8]

Less than a year later, on January 15, 2025, Joann filed for Chapter 11 bankruptcy protection once again.[9] The company attributed this second filing to ongoing declines in sales. Throughout this process, stores were expected to stay operational while the firm sought to cut approximately $500 million in debt.[10][11]

On February 12, 2025, the company announced plans to close approximately 500 of its remaining roughly 800 stores as part of an effort to "right-size" its retail presence.[12] Among those closures, California accounted for 61 locations, while Florida, Michigan, Ohio, and Pennsylvania each faced shutdowns exceeding thirty stores.[13] 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.[14] The final Jo-Ann outlets ceased operations on May 30, 2025.[15]

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 incorporating Joann’s private labels into both its brick-and-mortar shops and online platform in the upcoming months. This decision was influenced by a notable rise in fabric-related searches on Michaels’ website.[16][17]

See also

References

  1. ↑ Marotta, Eric (September 13, 2023). "Joann Fabrics to lay off workers at Hudson headquarters". Akron Beacon Journal. Retrieved September 16, 2023.
  2. ↑ Salpini, Cara (October 2, 2023). "11 retailers at risk of bankruptcy in 2023". Retail Dive. Retrieved October 3, 2023.
  3. ↑ Suttell, Scott (November 1, 2023). "Nasdaq sends delisting notice to Joann". Crain's Cleveland Business. Retrieved November 4, 2023.
  4. ↑ "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.
  5. ↑ Clanton, Alicia; Phakdeetham, Janine (March 18, 2024). "Crafts Firm Joann Files for Bankruptcy as Consumers Retreat". Bloomberg. Retrieved March 18, 2024.
  6. ↑ "Form 3 - Initial statement of beneficial ownership of securities". U.S. Securities and Exchange Commission. 15 March 2024. Retrieved 17 April 2024.
  7. ↑ "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.
  8. ↑ 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.
  9. ↑ Knauth, Dietrich (January 15, 2025). "Craft retailer Joann files for bankruptcy for second time in a year". Reuters. Retrieved 2025-01-21.
  10. ↑ Randles, Jonathan (January 15, 2025). "Crafts Retailer Joann Files Second Bankruptcy in A Year". Bloomberg. Retrieved January 15, 2025.
  11. ↑ "JOANN INC. Bankruptcy Filing". bankruptcyobserver.com. Retrieved 2025-01-21.
  12. ↑ Valinsky, Jordan (February 12, 2025). "Joann, the bankrupt fabrics retailer, is closing 500 of its 800 stores". CNN. Retrieved February 12, 2025.
  13. ↑ 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.
  14. ↑ Knauth, Dietrich (February 24, 2025). "Bankrupt crafts retailer Joann closing all stores". Reuters. Retrieved February 24, 2025.
  15. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named fastcompany
  16. ↑ Howland, Daphne (June 5, 2025). "Joann's future a mystery as Michaels snaps up IP, private labels". Retail Dive.
  17. ↑ Valinsky, Jordan (June 5, 2025). "Michaels is expanding its fabric selection following Joann's collapse". CNN.

External links

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