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 its 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 had successful businesses.
The problem was that their profitable operations could not service the huge debt they’d taken on. In addition to not being able to pay off loans, these companies also couldn’t afford to make needed changes to operations.
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Businesses have to evolve and can’t simply keep refilling their shelves with the same merchandise. When free cash is pinched, changes become impossible and put 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 it in 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 for Joann has begun
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 are final,” the company shared.
The chain, which in January filed for Chapter 11 bankruptcy for the second time in under a year, failed to find a buyer and has begun closing all 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 of 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,” they posted. “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.”