If you are a crafter, you may have wondered, “Will Joann Fabrics store near me, going to close?”

Being in the crafting niche, Joann Fabrics and Crafts has been around for several years selling fabric by yard and other crafter items. However, there is information that leads some to question the future of this much-loved craft store business. Started its journey more than 75 years ago and with locations across the 49 states, Joann is much more than just a shop, it is crafting. 

Well, Let’s start with exploring where Joann Fabrics stands today and where it is going to be in future.

Understanding Joann's Bankruptcy Filing

The final and decisive move occurred on March 18, 2024, when Joann Fabrics decided to apply for Chapter 11 bankruptcy proceedings in Delaware. This action although seems to be bad at first sight is not necessarily bad news for the firm.

Chapter 11 bankruptcy is also referred to as the reorganization type of bankruptcy whereby the business tries to renegotiate the debts and heals to continue operating. For Joann, this signifies an opportunity to face its financial problems. The company has sourced about $132m in new funds and it intends to debt its balance sheet by about $505m. 

Joann's Financial Troubles

Joann Fabrics has been experiencing several shortcomings in the recent past. After COVID-19, customer traffic reduced and there was less demand for fabric and masks. It also faces the issues of high costs associated with imported products, and rising frequencies of costs of shipment. From 2021 to the end of 2023 Joann wasted over $150 million in only the shipping cost. These problems are supplemented by increased competition; Joann competes not only with online sellers but also with its similar counterpart Hobby Lobby.

Current Store Status

Joann Fabrics remains open widely with these complications. The organization has operational stores with approximately 850 outlets spread over 49 states. Good news for crafters: Research shows that 95% of these stores are indeed profitable enough to meet the operating expenses. Joann states they will continue its store and corporate website open during bankruptcy. This implies that even before accessing the store physically you can still google ‘Joann Fabrics near me’ and you will find a place to buy your crafting materials.

Restructuring Plan

With regard to money issues, Joann has a solution in mind. They secured $132 million of new financing and expect to reduce their debt by $505 million — or 50% of the balance. This is expected to be completed by the end of April 2024 according to Joann. As part of that plan, Joann will operate as a private company again. They think that these are all positive changes that will develop them into an even more competitive company in the craft store industry.

Impact on Customers

Well, while shopping at Joann, you might not see major shifts occurring immediately. The company’s additional statement stresses that its stores and the company’s online platform will remain functional. You should still get all the products you are likely to look for including fabrics, arts and crafts materials, and home accessories. However Joann, with the view to reducing expenditure, might make the following changes. This could be in terms of store formats, types of stocks or types of sales other than the conventional one. Even with these possible changes Joann still wants to continue offering the same quality products for do-it-yourself enthusiasts.

Future Outlook

As for future development, Joann has the prospect of making some changes. They want to improve online shopping sites and generate more compelling in-store experiences. Joann may also increase its classes to get more clients. The company realizes that it has to be ready for what crafters want now and in the future. Fortunately for Joann, they have the brand name recognition to get them through these transition periods. However one must consider that not all strategies will lead to success. The threats that Joann faces include stiff competition, high cost of operation, and the dynamic needs of the crafter market.

Conclusion

It wasn’t the case that Joann Fabrics was going out of business. It allows them to mend financial issues while maintaining the doors of a majority of stores open. Here the future of Joann is at stake and the company must learn how to manage its future to meet the change in the market demand. It was believed that their restructuring could contribute to refining service to fans of DIY. Customers can assist by patronizing stores, joining classes and expressing their opinions. While Joann goes through these transformations, Joann is continuing to serve crafters as they have for the past 75 years. Most Joann Fabrics stores, including the ones in your area, are expected to remain open and prepared for your next DIY project.