why is joann going out of business

Joann is going out of business primarily due to a combination of declining consumer demand for craft supplies, significant inventory problems, and intense competition from online retailers and other brick-and-mortar competitors like Hobby Lobby and Michaels. The company filed for Chapter 11 bankruptcy twice within a year, with the second bankruptcy driven by weak sales, supply chain disruptions, and an inability to sustain its debt load, which was around $615 million. Despite efforts to restructure and find a buyer, no deal was reached that would keep the stores open, resulting in the closure of all nearly 800 Joann locations and the liquidation of assets. The private equity ownership and high debt burden stemming from leveraged buyouts also contributed to the company's financial struggles. Overall, the retail environment has become challenging, consumer spending on non-essential craft supplies dropped after a pandemic-related spike, and inventory shortages further hurt revenue, leading to the company's shutdown in 2025.