Is JOANN Going Out of Business? The Complete Story Behind Its 2025 Closure

If you loved browsing JOANN’s fabric aisles for a quilting project or grabbing yarn for a weekend crochet binge, you already know something changed. A lot of articles online still frame this as an open question — “is JOANN going out of business?” — with a reassuring “no, it’s just a few store closures.” That answer is outdated.

Yes, JOANN went out of business in 2025. After filing for Chapter 11 bankruptcy twice within a year, the company permanently closed all of its approximately 800 stores by May 30, 2025. Although the retail chain no longer operates, Michaels later acquired JOANN’s intellectual property and selected private-label brands, allowing some familiar products to continue under the Michaels umbrella.

Here’s the full, accurate timeline of what happened, why it happened, and where JOANN shoppers can go now.

Is JOANN Going Out of Business? The Direct Answer

Yes. JOANN Inc., the Hudson, Ohio-based fabric and crafts retailer that operated for more than 80 years, shut down entirely in 2025. This wasn’t a routine round of store optimization — it was a full liquidation following two bankruptcy filings in less than 12 months. Every standalone JOANN store closed, and the company’s roughly 19,000 employees lost their jobs.

If you’re seeing an article claiming JOANN “isn’t going anywhere” or that its store closures are “strategic,” that information predates the company’s collapse and no longer reflects reality.

Timeline: How JOANN Went From “Struggling” to Shut Down

• 2021 — JOANN goes public, trading on Nasdaq.
• 2022 — Revenue drops to $2.2 billion from $2.4 billion the prior year; the company posts a net loss of roughly $200 million after strong pandemic-era sales fail to hold.
• Early 2024 — JOANN closes a small number of underperforming stores as part of routine footprint management, which is the point many earlier articles captured as reassuring context.
• March 2024 — JOANN files for Chapter 11 bankruptcy for the first time, restructuring roughly $1 billion in debt. It emerges from this round a few weeks later without closing stores, but is delisted from the stock exchange and becomes a private company.
• January 15, 2025 — JOANN files for Chapter 11 a second time in under a year, citing sluggish consumer demand and inventory problems.
• February 12, 2025 — The company announces plans to close about 500 of its roughly 850 stores, while initially planning to keep around 300 open.
• February 21, 2025 — JOANN holds an asset auction. GA Joann Retail Partnership, a subsidiary of liquidation firm GA Group, wins the bid alongside JOANN’s term lenders.
• February 24, 2025 — After failing to find a buyer willing to keep any stores running, JOANN announces it will close all remaining locations and go out of business entirely.
• Through April–May 2025 — Stores close in waves; the final locations shut down by May 30, 2025.
• June 2025 — Michaels Companies acquires JOANN’s intellectual property and private-label brands, including the popular Big Twist yarn line — but not the stores or the company itself.
• September–October 2025 — Michaels revives the JOANN name as an in-store “Knit & Sew Shop” and “Party Shop at Michaels” across its U.S. and Canada locations, with Big Twist yarn back on shelves starting October 31, 2025. JOANN’s old website now redirects to Michaels.com.

Why Did JOANN Go Out of Business?

Several forces compounded over a few years:

• Post-pandemic demand collapse. JOANN’s sales spiked during COVID-19 as people took up sewing, mask-making, and home crafting. That surge didn’t hold once life returned to normal, and the company had scaled up inventory and costs expecting it would.
• Heavy debt load. JOANN carried close to $1 billion in debt heading into its first bankruptcy — a burden that limited its options once sales slowed.
• Declining foot traffic. Like many mall- and strip-center-based retailers, JOANN saw fewer in-store shoppers as spending patterns shifted toward online and discount channels.
• Failure to find a buyer. The company’s best chance to survive in some form was a buyer willing to keep stores operating. When no one stepped up during the February 2025 auction, full liquidation became the only outcome.
• Intensifying competition. Michaels, Hobby Lobby, and even general retailers like Target and Walmart continued to compete hard for the same crafting dollars JOANN needed.

What Happened to JOANN’s Stores and Employees?

All roughly 800 JOANN stores conducted going-out-of-business liquidation sales before closing for good, with the last locations shutting down by the end of May 2025. Gift cards were honored only through February 28, 2025, and the company stopped accepting returns once liquidation sales began. Reports place total job losses at approximately 19,000 employees nationwide.

Is JOANN Coming Back?

Not as an independent retailer — but the brand name lives on in a smaller form. Michaels acquired JOANN’s intellectual property and private-label product lines in June 2025 and has folded pieces of it into its own stores rather than reopening standalone JOANN locations:

• “The Knit & Sew Shop” — a dedicated, JOANN-branded shop-in-shop now inside Michaels stores across the U.S. and Canada, carrying thread, sewing notions, yarn, and fabric.
• “The Party Shop at Michaels” — another JOANN-linked concept integrated into Michaels’ footprint.
• Big Twist yarn — JOANN’s popular private-label yarn line, relaunched in Michaels stores and online starting October 31, 2025.

So if you’re looking for the specific products JOANN used to sell, Michaels is now the most direct place to find them — just not under a standalone JOANN storefront.

Where Can I Shop for Fabric and Craft Supplies Now?

• Michaels — the closest option, now carrying revived JOANN private-label lines including Big Twist yarn, plus its own broad crafting assortment.
• Hobby Lobby — a major full-line competitor offering fabric, yarn, sewing supplies, and home décor.
• Walmart and Amazon — solid options for basic sewing notions, popular yarn brands, and craft supplies at competitive prices.
• Specialty online retailers — sites like Hobbii, LoveCrafts, and WeCrochet cater specifically to knitters and crocheters looking for yarn variety JOANN used to offer in-store.

Best JOANN Alternatives

Final Verdict

JOANN did go out of business. After two bankruptcy filings within a year and a failed search for a buyer, the company liquidated all roughly 800 of its stores by the end of May 2025, ending an 80-plus-year run as a standalone retailer. The JOANN name survives only in a reduced form, licensed into Michaels stores through acquired intellectual property and private-label products like Big Twist yarn. If you’re looking for the full JOANN shopping experience, it’s gone — but a piece of what made it distinctive is still findable at Michaels.

Frequently Asked Questions

Did JOANN really go out of business? Yes. JOANN Inc. filed for Chapter 11 bankruptcy twice within about a year and closed all of its roughly 800 stores by May 30, 2025, after failing to find a buyer to keep any locations open.

When did JOANN close for good? JOANN’s final stores closed by May 30, 2025, following a February 2025 announcement that all remaining locations would liquidate.

Is JOANN coming back as a store? Not as a standalone retailer. Michaels acquired JOANN’s intellectual property and private-label brands in June 2025 and has revived parts of it — including a “Knit & Sew Shop” concept and Big Twist yarn — inside Michaels stores.

Can I still use my JOANN gift card? JOANN stopped accepting gift cards after February 28, 2025, once liquidation sales began. Gift cards issued before the closure are not honored by Michaels or any other retailer.

Who owns the JOANN brand now? Michaels Companies owns JOANN’s intellectual property and private-label brands, including Big Twist yarn, following its June 2025 acquisition.

Why did JOANN file for bankruptcy twice? JOANN first filed for Chapter 11 in March 2024 to restructure about $1 billion in debt and emerged without closing stores. Continued weak sales and inventory problems led to a second filing in January 2025, which this time ended in full liquidation.

Where can I buy Big Twist yarn now that JOANN is closed? Michaels relaunched Big Twist yarn in stores and online starting October 31, 2025, after acquiring the brand from JOANN’s bankruptcy estate.

What happened to JOANN employees when the stores closed? Approximately 19,000 employees nationwide lost their jobs as JOANN wound down operations through its 2025 liquidation.

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