JOANN to Shutter all Stores: The impact on the fabric retailer’s 20,000 workers

JOANN has been a destination for crafters, seamstresses, and artisans for more than eight decades in the U.S., and now that legacy is coming to an end. Earlier this year, the company announced that it would enter Chapter 11 bankruptcy proceedings and shutter at least 500 locations across the country.

This month, an auction was held to sell the company’s remaining assets, with GA Group emerging as the winner. GA Group is a liquidation firm that Bloomberg reported is backed by Oaktree Capital Management, which manages around $205 billion in assets, according to Business Wire, Berkshire Hathaway’s financial news outlet.

Though the store’s patrons had been told that only some of the retailer’s locations would be closed, news came this week, that the entire company would be entering the corporate graveyard. “Subject to court approval of the transaction, the winning bidders plan to wind down ongoing operations and conduct going-out-of-business sales at all JOANN locations,” reads JOANN’s press release from February 23.

Based on social media posts from employees, it appears that news of the closure has spread rapidly, with many stores swamped with customers. For those planning to visit their local JOANN location, be mindful of the stress that employees are feeling as you search for deals during these liquidation sales. Already, some workers are reporting negative experiences with customers who are blaming them for policies related to the bankruptcy filing—such as limits on returns—that they have no control over.

The fate of those who have donned the green apron

In 2023, JOANN reported to the U.S. Securities and Exchange Commission that it employed around 20,000 workers. According to the filing, approximately 75% of these workers were part-time employees. Just 1% of the company’s workforce was unionized, with membership limited to the distribution center in Hudson, Ohio.

The press release from Sunday acknowledged the company’s workers, stating that they were “committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the negative impact on all JOANN Team Members, vendors, customers, and communities.” The new owners of JOANN’s remaining assets stand to make some money on the purchase, or else they wouldn’t have made their bid. However, the financial future of those employed by the company is far less certain and will likely stay that way until the deal is finalized. The company has provided information to their employees that has not been made public about how they will move forward as the closures begin. We reached out to JOANN’s media team for comment, but have not yet heard back.

Customers give their thanks to the JOAN

With the sad news hitting many of JOANN’s most loyal patrons, many customers have taken to social media to give their thanks. From the team who selected the products and ensured they ended up on store shelves, to the employees who encouraged and advised patrons on their next project, the posts make clear the impact the JOANN team had on their customers.

On X, formally known as Twitter, one user blamed the closures on “greed,” writing that those behind the decision have “no idea what a hole this leaves in the country,” highlighting that many who JOANN’s customers purchased their supplies for charity projects at the retailer.

One Reddit user, with the handle destroygameobject, wished to express their gratitude. When they began their “sewing journey,” JOANN was their destination for materials and advice. “The employees at my JOANN are some of the nicest people, and it was cool because most of them were crafters too,” they wrote, adding that they always felt free to ask questions without judgment.

Another user, restless_wonder, described the news as “heartbreaking,” acknowledging that many employees had worked for the company for years and built bonds with their coworkers and patrons. “I’ve made relationships with some of the employees at my local JOANN, and we always chat when I’m in there. I’m genuinely going to miss it,” they said.

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