Joann Fabric Bankruptcy: Bloomington Store Among 500 Nationwide Closures

The Joann fabric and craft store in Bloomington is closing as part of a nationwide downsizing effort. Over 500 Joann stores across the United States will be shuttered. The company, which filed for Chapter 11 bankruptcy for the second time in a year, is taking these steps to streamline operations and facilitate a sale process.

This closure is part of a larger initiative where over 500 Joann stores across the United States will be shuttered. The company, which filed for Chapter 11 bankruptcy for the second time in a year, is taking these steps to streamline operations and facilitate a sale process.

Impact on Bloomington Community

The closure of Joann in Bloomington will undoubtedly have a significant impact on the local community. This store has been a staple for craft enthusiasts, offering a wide range of fabrics, sewing supplies, and other craft materials. The loss of this store means that residents will need to seek alternatives for their crafting needs.

Local Alternatives for Fabric and Craft Supplies

Fortunately, Bloomington is home to several other stores where residents can find similar products. Here are some local options:

• Michaels: Located at 120 N Gates Drive, Michaels offers a wide range of fabric and sewing items, as well as art and craft supplies and decorations. They are open from 9 a.m. to 9 p.m. Mondays through Saturdays, and 10 a.m. to 7 p.m. on Sundays.
• Art Remains: This non-profit craft store, located at 115 N. College Ave. Suite No. 12, sells donated new and used art supplies and fabrics at low costs. They are open by appointment or from 3 p.m. to 6 p.m. on Thursdays and Fridays, and from 11 a.m. to 3 p.m. on Saturdays.
• Klaiber’s Sewing Center: Situated at 617 W. 17th St., Klaiber’s Sewing Center offers fabric and sewing items and provides machine repair and maintenance services. They are open from 9 a.m. to 5 p.m. Monday through Friday, and from 9 a.m. to 3 p.m. on Saturdays. They are closed on Sundays.
• University of Sewing: Located at 611 W. 11th St., Suite No. 2, University of Sewing sells fabric and sewing items, sewing machines, and furniture, and also offers classes and programs. They are open from 10 a.m. to 6 p.m. Tuesday through Saturday, and are closed on Sundays and Mondays.

Reasons Behind the Closure

Joann’s decision to close more than 500 stores comes after the company filed for Chapter 11 bankruptcy for the second time within a year. The company first sought bankruptcy protection in March 2024, securing around $132 million in new financing to address its $1 billion debt. Despite these efforts, a series of store closures followed, and the company filed for Chapter 11 bankruptcy again in January 2025 to facilitate a sale process aimed at maximizing the value of its business.

Chapter 11 Bankruptcy Explained

Chapter 11 bankruptcy allows a company to reorganize its debts and attempt to become profitable again. In Joann’s case, the company is using this process to close underperforming stores and streamline its operations. This is a strategic move to make the company more attractive to potential buyers and investors.

Future of Joann Stores

While the exact timeline for the closure of the Bloomington store has not been announced, it is clear that the company is undergoing significant changes. Joann has confirmed plans to close 533 of its roughly 850 stores across the U.S., including 20 stores in Indiana. This move is part of a broader effort to stabilize the company’s finances and position it for future success.

Impact on Employees

The closure of over 500 stores will have a considerable impact on Joann’s employees. The company has acknowledged the difficulty of this decision, recognizing the major impact it will have on team members, customers, and the communities they serve. Employees at the Bloomington store have not yet been informed of the specific closure date, adding to the uncertainty surrounding their future employment.

Conclusion

The Joann fabric and craft store in Bloomington is closing, as are over 500 other locations nationwide. This is a significant loss for the local crafting community, but residents still have several alternative options for their fabric and craft supply needs. The company’s decision to file for Chapter 11 bankruptcy and close underperforming stores is a strategic move aimed at stabilizing its finances and preparing for future growth. For more detailed information, you can read the full story on the Herald Times Online.