CONSUMERS can still find products sold at Joann Fabric and Crafts at one competitor and alternatives at three other retailers.
Joann notably went bankrupt in January after significant financial woes.
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It’s the second time the chain filed for Chapter 11 bankruptcy protection, with the first being in March 2024.
While Joann was able to restructure and re-emerge with a reduced footprint at the time, the second bankruptcy earlier this year was the final nail in the coffin.
Joann cited around $615 million in debt, with monthly costs of $26 million to keep stores operational.
Executives also said that the company encountered “an unexpected ramp-down, and, in some cases, the entire cessation of production of key JOANN inventory items,” per court filings.
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This sudden loss of inventory led to subsequent revenue losses and an inability to cover debts.
Initially, the beloved crafts retailer was expected to only close 530 of its stores and continue with a remaining 270, but in February it confirmed that everything would be shuttered permanently.
Final going-out-of-business sales ended on May 31, with no Joann stores now remaining.
MICHAELS’ MOVE
Except, top competitors like Michaels have bought some of Joann’s private label brands and intellectual property, per a recent press release.
The retailer even set up a dedicated web page for former Joann customers that showcased sewing, quilting, and fiber arts supplies that used to be found at the now-bankrupt store.
“Michaels is responding by expanding its selection of customer-loved brands starting this month to ensure every creator has access to the tools and materials they want,” the company noted in the release.
A total of over 600 products will be added.
Top options previously seen at Joann include Big Twist, Bernat, Lion Brand, and Red Heart yarn.
There will also be 60 new Loops & Threads yarn options, along with New Brother and Singer sewing machines.
Items from Fiskars, Velcro, Coats & Clark, and Clover will also be at Michaels over 1,200 locations nationwide, along with the Oliso Smart Iron and Pellon sewing and quilting supplies.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can’t repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
OTHER OPTIONS
Crafters should also look to Hobby Lobby, Walmart, and Amazon for yarn, fabric, and creative items.
Hobby Lobby also has over 1,000 stores and similar materials to both Joann and Michaels.
Walmart and Amazon also do have a wide selection of craft supplies.
The only issue is that sometimes prices are more expensive at the giants than the retailers with a specific focus in the market.
CARD CHAOS
Joann also sparked controversy among customers during the months leading up to its final closures.
Some customers were in uproar after the retailer decided to only allow gift cards until February 28, long before all stores would be shuttered.
“I just want you to know how incredibly upsetting it is that you cut off our ability to use gift cards,” a shopper fumed in the comments section of one of Joann’s Instagram posts.
“So upset you cut off gift cards so quickly and with little notification,” another added.
Joann also isn’t the only retailer to file for bankruptcy so far this year.
Fast fashion brand Forever 21 filed in March, also it’s second, and closed its remaining locations.
Rite Aid also filed for its second bankruptcy and confirmed more store shutdowns.
