The recent bankruptcy filing by JOANN Stores, a major U.S. retailer of craft supplies and fabrics, has dramatically impacted the craft industry in America and potentially compromised the long-term growth of craft for everyone.
JOANN has been a mainstay in the craft industry for decades. Along with Michaels and Hobby Lobby, they have been the “mass” stores that customers visited in an otherwise small-business-dominated market. Even craft brands that didn’t sell through JOANN benefited from their presence, as they were one of the best engines for attracting new customers. I can’t say how many times we at Hero Arts, my family-founded business, heard from customers, “I purchased my first stamp at JOANN Stores.” JOANN certainly also had its drag on the industry, which I will discuss below, and now leaves uncertainty in its wake as the company’s 800 storefronts are closing across the nation.
Hero Arts, known for its high-quality rubber stamps, inks, and crafting supplies, is a small, community-driven business feeling the strain. Hero Arts worked with JOANN Stores for 25 years before the financial troubles that led to bankruptcy in 2024. Hero Arts, like many vendors, relied on the stable partnership that came with a large retailer. The primary benefits included large enough volumes to make products cheaper, not just for JOANN customers, but for customers across all the channels Hero Arts sold. In addition, JOANN allowed for a diverse set of products that didn’t necessarily sell to the more sophisticated crafters to be tested and sold through various types and geographic locations that JOANN serviced. Finally, JOANN offered long timeframes for product development, whereas direct-to-consumer and selling through independent retailers required a constant stream of new products.
JOANN’s struggles stemmed from a variety of factors, but the primary reason was a fundamental misreading of the structural changes in the aftermath of COVID. Specifically, the surge in demand as everyone was stuck at home would invariably wane, and the supply chain disruptions that seemed temporary were, in fact, long-lasting. This combination of a new demand pattern and a changing supply landscape was not incorporated into JOANN Stores’ planning and forecasting. It became obvious to suppliers like Hero Arts that the purchasing forecasting, a real strength of JOANN prior to COVID, was increasingly out of touch with sales, customer demands, and feedback at the store level. This soon became clear to suppliers with slow pay, reduced new product introductions, delayed shelf resets, difficulties with inventory management, and a dramatic rise in consumer complaints.
One of the biggest immediate concerns for small craft companies is the loss of expected revenue. JOANN’s bankruptcy raises serious questions about payments for goods already shipped. For family-run businesses operating on tight budgets, even minor payment delays can be financially crippling.
Another challenge is the sudden disruption in the supply chain. Unlike big corporations that can easily adapt, small businesses carefully plan production schedules and inventory levels. Unexpected order cancellations or sudden changes in expected sales can lead to costly inventory problems or shortages, placing immense pressure on their already limited resources.
Losing a major retail partner like JOANN also severely impacts market visibility. For many small brands, being featured on JOANN’s shelves was essential for gaining customer trust and recognition. These businesses must quickly shift their strategies to find alternative sales channels or expand their online presence, often without significant financial resources to back such rapid changes.
Financial stability becomes another critical issue. JOANN’s bankruptcy may negatively impact small suppliers’ credit ratings and reduce their access to necessary financial support from banks or other lenders. Family-owned businesses, often with fewer financial safety nets, feel this impact the most deeply.
Additionally, JOANN Stores’ historical reliance on inexpensive, lower-quality imports, primarily from China, has long undermined small, U.S.-based manufacturers dedicated to quality and sustainability. This reliance on cheap goods has made it harder for small American businesses to compete, impacting their profitability and growth opportunities.
The broader retail environment adds another layer of difficulty. Amazon’s dramatic rise has significantly reduced the number of independent craft-focused storefronts in communities across America. With JOANN set to close around 800 stores nationwide, the craft community faces losing key community hubs. These locations were not just stores but gathering places for in-person classes, workshops, and social events that brought crafters together. Although digital tools like social media and online tutorials are invaluable, they cannot fully replace the unique sense of community fostered by local craft stores.
Yet, despite these challenges, companies like Hero Arts are incredibly resilient and adaptive. Small businesses can turn this difficult situation into an opportunity by strengthening their direct-to-consumer sales through online platforms, engaging deeply with their local and digital communities, and partnering with other small businesses to find new ways to succeed. This collaborative spirit and dedication to quality and community make small businesses special, and ultimately, these qualities will guide the future of American craft manufacturing.
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