On February 23, Joann announced that GA Group and Prepetition Term Loan Agent will buy the craft retailer. The winning bidders promptly launched going-out-of-business sales and finally closed its last remaining locations permanently on May 31.
The news came just a week after Joann began closing down 500 of its 800 locations nationwide as part of the fabric retailer’s Chapter 11 bankruptcy process which began on January 15. The closures followed a wave of store closures expected this year. In January, Macy’s said it’s closing 66 stores this year while Kohl’s has plans to close 27 locations.
While the loss of Joann Fabrics is a painful one for crafters nationwide, former customers may be able to find some of their most beloved Joann exclusives in stock at one of the craft retailer's biggest rivals. Michaels announced last week that it bought some of the now-shuttered craft store’s private label brands and intellectual property.
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In addition to expanding its product portfolio to cater to former Joann customers, Michaels also created a dedicated landing page just for former Joann shoppers, showcasing Michaels sewing, quilting and fiber arts supplies.
Why did Joann go out of business in 2025?
Over the last 80 years, Joann had been the go-to store for crafters, quilters, crocheters, and other creative people to find supplies and guidance for whatever project they’re working on. But the company struggled in recent years as consumer spending on craft supplies dropped and competition from online retailers grew.
In its court filings, Joann cited “an unexpected ramp-down, and, in some cases, the entire cessation of production of key JOANN inventory items” as a key reason for its decision to file for bankruptcy. The sudden loss of inventory led to a loss of revenue which left Joann without the cash needed to cover its debts.
The initial decision to close 500 of its 800 locations was part of an effort to maximize the value of the business as Joann prepared to sell. While it hoped to attract a buyer that would keep the remaining business in operation, the auction ultimately went to a buyer that liquidated the business and closed down all store locations.
Michaels Buys Joann's Exclusive Brands in a Bid to Expand Its Business
With Joann fabric stores closing, Michaels said searches on the website for “fabric” surged 77% while searches for “sewing” on the site grew 39%. “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 craft retailer said in a press release.
The recent acquisition of former Joann-exclusive brands and products is a big part of that, but the retailer will also be expanding the assortment of some of its existing products as well. All told, Michaels will be adding over 600 products, with a big focus on expanding its selection of sewing, quilting and fiber arts supplies.
The expanded selection, including some of the most beloved brands from the now-shuttered Joann stores will start rolling out at Michaels locations nationwide as early as this month. Some of the most notable new additions the retailer has confirmed will be coming to Michaels include:
- Big Twist yarn, including Value Plus, Twinkle, Posh and Baby Bear products.
- New and expanded offerings from other popular yarn brands like Bernat, Lion Brand and Red Heart.
- Over 60 new Loops & Threads yarn options
- New Brother and Singer sewing machines
- New products from Fiskars, Velcro, Coats & Clark and Clover
- Pellon sewing and quilting supplies, including batting, stabilizers and thread packs.
- The Oliso Smart Iron
For knitters, crocheters and everyone else who works with yarn, one of the most notable additions coming to Michaels shelves is the formerly Joann-exclusive Big Twist brand yarn. The versatile yet affordable yarn brand is just part of the retailer’s plan to expand its yarn assortment by 25% by the end of the year.
Other alternatives to Joann Fabric Stores
While Joann’s stores have been a staple for crafters over the last few decades, it wasn't the only option for stocking up on yarn, fabric, and other creative supplies. Two of its biggest competitors are Michael’s and Hobby Lobby, both of which boast over 1,000 locations nationwide.
You can also search for local stores near you specializing in your favorite craft. Local yarn stores, for example, often carry specialty products and may be willing to special order your favorite materials.
Michaels may be your best bet if you're looking for a brand that was once exclusive to Joann. But shoppers who aren't searching for brand-specific products can head to local stores or one of the now-closed retailer's major rivals and still find plenty of stock to choose from for just about any project they would have originally gone to a Joann’s Fabric Store for.
Aside from craft-focused retailers, shoppers can also try their luck at Amazon and Walmart. Both retail giants offer a broad range of craft supplies online. Just double check prices, because sometimes items like yarn or paint are actually more expensive on Amazon than they are at a craft store.
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