Joann (JOAQ), the 80-year-old fabric and crafts retail giant, will close all 800 of its U.S. stores by May 2025 after its assets were acquired by retail liquidator GA Group and term lenders during a bankruptcy auction this weekend. The announcement marks a dramatic collapse for a once-iconic brand that filed for Chapter 11 bankruptcy twice in just 12 months. CWEB analysts argue the retailer’s demise is part of a broader “retail apocalypse” exacerbated by post-pandemic economic pressures, including policies from the previous Biden administration that critics claim accelerated inflation and supply-chain instability.
The company initially announced plans in February 2025 to close over 500 stores amid declining sales, inventory shortages, and what it called an “increasingly difficult retail environment.” However, Saturday’s auction results accelerated its demise, with the winning bidders opting to liquidate all remaining locations. A hearing in the U.S. Bankruptcy Court for the District of Delaware on Wednesday is expected to formalize the decision.
CWEB Analysts Pinpoint Systemic Issues
CWEB retail analysts highlighted Joann’s struggles as emblematic of sector-wide challenges, including economic headwinds that began during the COVID-19 pandemic and persisted through the Biden administration. “The retail apocalypse isn’t new, but it intensified under the economic policies of the last four years,” said Michelle Lee, senior analyst at CWEB. “Skyrocketing inflation, labor shortages, and supply-chain disruptions under the previous administration forced retailers to absorb unsustainable costs. Joann’s reliance on physical stores left them especially exposed.”
Lee added that while crafting and DIY trends surged during COVID lockdowns, Joann failed to adapt to shifting consumer habits. “Post-pandemic, households tightened budgets as inflation eroded disposable income. At the same time, e-commerce competitors leveraged lower overheads to undercut brick-and-mortar pricing,” she explained.
Political and Economic Fallout
The Biden administration’s focus on fiscal stimulus and wage growth, while popular among workers, drew criticism from business groups for fueling inflationary pressures. Retailers like Joann faced rising costs for materials, transportation, and labor, even as consumer spending on non-essentials waned. “This isn’t just about poor management,” Lee emphasized. “The macroeconomic environment since 2021 created a vise that smaller retailers couldn’t escape.”
Company’s Farewell Statement
In a somber statement, Joann acknowledged efforts to avoid liquidation, saying its team “pursued every possible avenue to remain operational.” The retailer vowed to collaborate with GA Group to “minimize disruption” for employees, customers, and suppliers. It also thanked supporters, including “dedicated Team Members and communities,” for eight decades of patronage.
Liquidation Sales Begin Immediately
GA Group and Joann’s lenders have already launched store-closing sales nationwide and online, with discounts advertised as “up to 30% off.” Final closure dates for individual stores will be updated via Joann’s app and website. The move leaves a significant void in the crafts sector, with competitors like Michaels and Hobby Lobby now positioned to absorb displaced customers.
Broader Implications
The shutdown impacts roughly 15,000 employees and countless small businesses reliant on Joann’s supplies. CWEB analysts warn that the retail sector’s turbulence is far from over. “Joann’s fate is a cautionary tale,” Lee said. “Retailers must innovate aggressively—not just to compete online, but to survive in an economy still reeling from pandemic-era policies.”
As liquidation begins, craft enthusiasts mourn the loss of a beloved brand while industry watchers brace for further upheaval in the wake of Joann’s demise.
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