Joann Fabrics prepares to shut all 800 of their stores, marking a dramatic change in the crafting industry. Joann Fabrics has been an arts and craft retailer for decades, with over 800 outlets nationwide. It is the end of a era for this 80-year-old company. Michaels Stores is the primary rival of Joann, which has closed its doors after filing for bankruptcy.
What This Means for Crafting Fans
Joann’s closure illustrates the difficulties faced by brick-and-mortar stores in an era of increased ecommerce and shifting customer preferences. Financial troubles at the company were exacerbated by a decrease in store traffic, and fierce competition from craft online retailers. The current economy puts pressure on even established brands, especially those that specialize in niche craft goods.
Michaels is well-positioned, however, to absorb some customers from Joann. Michaels has approximately 1,200 locations across the United States, and an active online presence. The market is now left with a hole for people who loved the offerings that Joann’s had, like quilting fabric or custom framing.
Joann’s customers can learn a lot from this article
Joann Fabrics has declared immediate liquidation of all stores after declaring bankruptcy earlier this year. Joann Fabrics will permanently close all stores within the next couple of months, affecting craft supplies, custom framing, and fabric choices.
GA Group purchased Joann Fabrics’ assets at auction. The company will now oversee the controlled wind-down of retail operations and liquidation. The previous attempts at restructuring Joann Fabrics’ debt failed to mitigate their persistent financial problems.
Joann’s problems are attributed by industry analysts to the intense competition of large retailers, such as Walmart and hobby stores, along with the growth in specialized art supplies and hobby ecommerce platforms, like Etsy and Blick Art Material, that directly compete against their core business. Joann is an example of how other large chain stores can learn from her struggles.
Joann’s exit from the market has left a void in fabric, craft and seasonal supplies. Michaels is a great place to find craft supplies, but its fabric section hasn’t been as extensive as Joann.
Analysts believe that Michaels will strategically expand its inventory in order to appeal to former Joann clients. They are targeting specific segments, such as quilters who want quilting fabrics, or those looking for customized services, like custom framing.
Find a Michaels Store near You
Michaels Crafts has an interactive map of its stores that is especially helpful to former Joann Fabrics and Crafts clients. Michaels Crafts stores are located in almost every state of the United States, with Hawaii being an exception.
Customers can search for the closest Michaels stores using the official store locator Michaels has a website. The tool lets you search for a store by zip code or city. It also provides information about craft classes and product availability.
Joann Fabrics Issues an Official Statement
Joann Fabrics made the following statement Following a comprehensive auction and sale, GA Group along with Prepetition Term Loan Agent has been chosen as the highest bidder in order to purchase substantially all the assets of JOANN. In connection with this agreement, subject to Bankruptcy Court approval of the transaction, the winning bidders plan to begin winding down the Company’s operations and conduct going-out-of-business sales at all store locations.
JOANN management, the Board of Directors and our legal advisors made every effort to reach a better outcome, which would have kept the business in operation. Our commitment is to work constructively with our winning bidder in order to wind down operations as quickly and efficiently as possible, minimizing the impact to all of our stakeholders. “We are grateful to our Team Members and our Customers, as well as the communities in which they live for their support over more than eighty years.
Craft and Fabric Retailing in the Future
Michaels is expected to explore new opportunities for growth in its retail space, while online platforms could see an increase of users looking for alternative options. Other services that are impacted by craft and fabric retailers include quilting, craft classes and opportunities for custom framing. Joann’s will continue its liquidation for a few weeks after the store closes. The sales offer bargain hunters a chance to get snazzy items, while also signaling an important shift in retail arts.