Many brands fail despite having a large fan base.
Just because people love you and support your company does not guarantee success. A popular restaurant, for example, might be steadily busy, but if it’s landlord thinks another tenant will pay more money for the space, it might close due to a rent increase it can’t afford.
Related: Discount retailer closing more stores after Chapter 11 bankruptcy
In retail, rising rents can play a role but so can many other things. A number of the chains that have fallen into liquidation over the past few years actually had successful businesses.
The problem is that they had so much debt that profitable ongoing operations cannot service their debt. In addition to not being able to pay off loans, these companies also can’t afford to make needed changes.
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Businesses have to evolve and can’t simply keep refilling their shelves with the same merchandise. Having limited free cash makes changing impossible and puts retailers at risk of losing business to more adaptive rivals.
When a retailer faces rising costs and high debt loads, a small drop in business can put a company into dire straits. Add in the high cost of borrowing money and it’s inevitable that some retailers will fail despite having a devoted fanbase.
Joann has begin its going-out-of-business sale.
Image source: Getty Images.
The end has begun for Joann
When you visit the Joann’s website, the company makes its situation starkly clear. You’re greeted with a banner in all caps.
“All stores are closing. Take up to 40% off storewide. All sales final,” the company shared.
The chain, which filed for Chapter 11 bankruptcy for the second time in under a year in January, failed in its efforts to find a buyer and has begun closing all of its stores. That’s happening faster than customers expected.
“Originally I saw that I would have till May so I was going to control myself and not come until April but as they say curiosity killed the cat and I was a little too late,” one user shared on Reddit, posting a photo off bare shelves.
The unnamed poster said it was the first time they had ever left the fabric store without buying anything.
“I could cry actual tears.”
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The retail chain has also shut down its website.
“Due to high demand, we can no longer fulfill online orders. Please see your local store for all your crafting needs,” the retailer posted, along with a caveat. “Inventory varies by location.
Joann customers are upset
Joann served a dedicated fanbase of crafting, sewing, and other related hobbyists. The company considered its mission “To inspire the creative spirit in each of us — our customers and ourselves.”
The chain’s closing its hitting many of its customers very hard.
Reddit user u/SarahSaidSo182 posted a handmade image of a tombstone for the chain sharing its 1943 birth and 2025 death. Many people posted messages under that.
“So sad, she will be missed,” shared Only-Alfalfa-3052.
Polka_dots 769 shared an emotional response as well.
“Aww. I started crying after I saw your graphic,” they wrote.
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Some people are taking it very hard.
“You aren’t alone. I’m crying too. It’s so weird to say but I really loved that place. It was a bright spot in my life,” added Environmental-Ad9339.
StringandKnits also shared some deep emotions about the closing chain.
“I am too! She was like a friend I went to hang out with when I needed a pick me up. I have went a few times since they announced the closing just to get it out of my system. The last time I went, it was pretty somber, a lot was picked through, the big rush had died down and they weren’t even playing music. It was eerily quiet, except for some construction noises coming from the back…I’m not sure if I want to go back after that, it was kind of depressing,” they posted.
