Joann Fabrics bankruptcy (2025)
Joann, the national fabric and craft chain, filed for Chapter 11 bankruptcy in March 2025 and said it would close roughly half of its roughly 800 stores. The company had struggled with heavy debt and falling sales for years.
Hundreds of Joann locations closed, leaving many malls and shopping strips without a dedicated fabric store.
The biggest fabric retailer shrank to a small fraction of its former footprint, shifting fabric sales toward online sellers and independents.
When the dominant chain contracts, independent shops like Folklore Fabrics can capture customers who still want to touch fabric before buying and who value classes over shipping speed.
