FORMERLY PE OWNED
JOANN
Includes Jo-Ann Fabrics, Joann Fabrics
arts & crafts · Hudson, OH
- PE Firm
- Leonard Green & Partners →
- Year Acquired
- 2011
Bankrupt twice in ten months. Leonard Green stitched together a masterpiece of destruction.
What Happened
- Leonard Green acquired JOANN for $1.6B in 2011 and loaded it with over $1B in debt; stock lost 99% of value between 2021 and 2024
- Filed Chapter 11 on March 18, 2024 — then filed a second Chapter 11 on January 15, 2025, less than a year later
- All stores closed and 19,000 employees laid off after the second bankruptcy; assets sold to a liquidator
- The Container Store (Dec 2024) and former Leonard Green company Prospect Medical (Jan 2025) also went bankrupt within the same year — a pattern the Private Equity Stakeholder Project laid at Leonard Green's feet
The Damage Done
- Every JOANN store in America permanently closed by May 2025 — crafters, quilters, and small business owners lost their primary fabric and supply source overnight
- 19,000 employees laid off with minimal severance; gift cards and store credits became worthless
- Customers who'd built decades-long relationships with their local JOANN — many the only craft supply store in their area — had nowhere to go
- Online orders placed before the final closure were canceled; loyalty program points evaporated