JoAnn Fabrics fans seek to stitch void left by private equity with crafts co-op
Summary
JoAnn Fabrics, a popular fabric store chain in the US, closed in 2025 after being affected by private equity ownership. Fans and small business owners connected to the store are now exploring ways to create a cooperative, member-owned crafts business to continue supporting local makers and preserve craft skills.Key Facts
- JoAnn Fabrics started in the 1940s in Cleveland, Ohio, and grew to an 800-store chain.
- The company went bankrupt in 2025 under private equity firm Leonard Green & Partners.
- Many small businesses, like wedding dress makers and upholsterers, relied on JoAnn Fabrics.
- Sandy McClenahan, a former tech worker and hat maker, is leading efforts to form a craft cooperative.
- A survey showed interest from people in every US state to create a member-owned co-op.
- Worker-owned cooperatives in the US have grown from 315 in 2014 to 820 in 2024.
- Employee stock ownership plans (ESOPs) are increasing, with new laws supporting their growth.
- About 40% of US small businesses are owned by retiring baby boomers, who will transfer $5 trillion in assets soon.
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