Joann Fabrics, a popular craft store chain located at 1226 S. Koeller St. in Oshkosh, will close its doors later this year and is among 16 locations across the state to shut down after the company filed for bankruptcy last year. Nationally, 500 stores will close, leaving only 300 open, a 62 percent decrease.
While no closure date has been set, court documents first found by the Sheboygan Press have revealed that fixtures, furniture and other equipment can’t be sold until April 19. However, sales started as early as Feb. 15, according to an FAQ page on the company’s website. Online shopping will remain available for customers.
Joann Fabrics filed for bankruptcy in March of 2024 after deciding to take the company private. However, they were not out of the woods, and previous rounds of closures quickly followed, as well as another declaration of bankruptcy last month. That release did not include any mention of closing stores in the state.
In a prepared statement, a Joann spokesperson said that the closures are due in part because of the ongoing Chapter 11 process — a type of bankruptcy allowing a debtor to reorganize its debt and continue operating — while trying to maximize the value of the business.
“This was a very difficult decision to make, given the major impact we know it will have on our team members, our customers and all of the communities we serve,” the spokesperson said. “A careful analysis of store performance and future strategic fit for the company determined which stores should remain operating as usual at this time. Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann.”
Joann Interim Chief Executive Officer Michael Prendergast said he wanted to thank all the dedicated customers and employees for they’re years of service to the chains that are set to close in a message in January.
“We remain committed to continuing to support them and serving our customers – the sewists, quilters, crocheters, crafters and other creative enthusiasts we have served for more than 80 years – during the process,” Prenergast said.
The company was founded in 1943, with a single storefront in Cleveland, Ohio, and later grew into a national chain. Formerly known as Jo-Ann Fabric and Craft Stores, the company rebranded itself with the shortened “Joann” name for its 75th anniversary.
Currently, there are 23 Joann’s locations across the state, however that number will soon decrease to seven. Locally, that includes the Appleton and Green Bay stores, while the Fond du Lac, Sheboygan and Milwaukee stores are among those set to close.
