JOANN Stores Company Profile

Background

Founded in 1943 as the Cleveland Fabric Shop in Ohio, JOANN Stores, LLC evolved into a leading American specialty retailer specializing in fabrics, arts, and crafts supplies. The company rebranded to Jo-Ann Fabrics in 1963 and later to JOANN in 2018 to reflect its broader product offerings. Headquartered in Hudson, Ohio, JOANN operated approximately 800 stores across 49 states, serving a diverse customer base with a wide range of crafting materials and home décor products.

Key Strategic Focus

JOANN's strategic focus centered on providing a comprehensive selection of fabrics and crafting supplies to cater to both hobbyists and professional crafters. The company emphasized enhancing the customer experience through in-store workshops, online tutorials, and a robust e-commerce platform. By offering a diverse range of products and fostering a community of creativity, JOANN aimed to be the go-to destination for all crafting needs.

Financials and Funding

In March 2021, JOANN went public on the Nasdaq stock exchange under the ticker symbol JOAN, raising $131 million in its initial public offering. Despite this capital infusion, the company faced financial challenges, including mounting debt and increased competition. In March 2024, JOANN filed for Chapter 11 bankruptcy protection, aiming to restructure and reduce its debt by over $500 million. However, continued operational difficulties led to a second bankruptcy filing in January 2025, with the company holding $615.7 million in debt at that time.

Pipeline Development

JOANN's product development pipeline focused on expanding its private label offerings and introducing new product lines to meet evolving consumer trends. The company developed over a dozen private brands, including Recollections, Studio Décor, Bead Landing, Creatology, and Ashland, to provide exclusive products to its customers.

Technological Platform and Innovation

To enhance the customer experience, JOANN invested in technological innovations such as an e-commerce platform that allowed customers to upload, edit, and print photos from their computers or social media sites. This platform enabled customization of size, surface, frame, and mat for various projects. Additionally, JOANN offered online tutorials and virtual workshops to engage customers and foster a community of crafters.

Leadership Team

As of early 2025, JOANN's leadership team included:

Chris DiTullio: Chief Executive Officer

Scott Secella: Chief Financial Officer

Both executives played pivotal roles in navigating the company through its financial restructuring efforts and strategic initiatives.

Leadership Changes

In March 2019, Wade Miquelon was appointed as President and CEO, succeeding Jill Soltau, who left the company in March 2018. Miquelon led the company through its rebranding efforts and initial public offering.

Competitor Profile

Market Insights and Dynamics

The arts and crafts retail market has experienced fluctuations, with a surge in demand during the COVID-19 pandemic as consumers engaged in home-based activities. However, post-pandemic, the market faced challenges due to changing consumer behaviors, increased competition, and economic pressures.

Competitor Analysis

Key competitors in the arts and crafts retail sector include:

Michaels Stores, Inc.: Founded in 1973, Michaels operates as a major arts and crafts retailer, offering a wide range of products and services, including custom framing and online photo customization.

Hobby Lobby: A privately held retail chain offering arts and crafts supplies, home décor, and seasonal products.

AC Moore: Before ceasing operations in 2020, AC Moore was a competitor in the arts and crafts retail space.

These competitors have capitalized on market trends and consumer preferences, posing significant challenges to JOANN's market position.

Strategic Collaborations and Partnerships

In March 2019, JOANN partnered with GoldieBlox to launch a monthly subscription box aimed at helping children aged 8 and up develop STEM skills through crafting projects. This initiative aligned with JOANN's commitment to fostering creativity and education among younger audiences.

Operational Insights

JOANN's operational strategy involved a mix of brick-and-mortar stores and a growing e-commerce presence. The company faced challenges in inventory management, supply chain disruptions, and adapting to rapidly changing consumer preferences. Despite efforts to modernize and streamline operations, JOANN struggled to maintain profitability and market share.

Strategic Opportunities and Future Directions

As of February 2025, JOANN announced the closure of all its stores and the liquidation of its assets after failing to find a buyer. This decision resulted in the loss of approximately 19,000 jobs. The company's inability to adapt to market dynamics, manage debt effectively, and compete with more agile competitors led to its downfall.