End of the thread: Fairbanks Joann store nears closure amid national liquidation

From bankruptcy to liquidation

Joann stores filed for Chapter 11 bankruptcy protection in January, initially announcing in early February that only some of its locations would close. Fairbanks was spared — at first. But by Feb. 28, the company reversed course and declared all stores nationwide would shutter and liquidate inventory.

The sudden shift dashed the hopes of local artists and hobbyists who relied on Joann’s extensive selection of fabric, yarn, notions and seasonal decor.

“It’s sad because it’s Fairbanks, and there aren’t very many things to do here to begin with,” said longtime customer Kim, who declined to share her last name. “I’ve been shopping here since they first opened.”

Before heading off on what could be one of her final shopping trips at the store, Kim added, “I will probably have to start shopping for supplies at Walmart and Michael’s, but they just don’t have the same selection Joann does ... ”

A pandemic boom, a post-Covid bust

Online records show the store opened in Fairbanks in 2005. Store employees have largely declined to comment on the closure. A supervisor cited company policy prohibiting staff from speaking to the media. One employee said they were unsure when the store’s final day would be, though community members speculate inventory will be gone by late May.

Joann experienced a surge in popularity during the early days of the Covid-19 pandemic, when crafting and sewing gained popularity among isolated Americans. At its height, Joann’s stock (NASDAQ: JOANQ) reached $16.92 on June 4, 2021. As of mid-April, it had plummeted to just 7.6 cents.

Analysts have attributed the company’s downfall to multiple factors. A leveraged $1.6 billion buyout by private equity firm Leonard Green & Partners saddled the company with debt and annual management fees. A March 2025 Fortune article by Lila Maclellan pointed out that “Joann accepted an unsolicited bid from Leonard Green & Partners to take the company private ... [which] left the company with a mountain of debt — the remnants of which would bog it down for years.”

In addition, economic headwinds and the shift toward online retail further disadvantaged Joann’s brick-and-mortar model. In a January news release, CEO Michael Pendergrast acknowledged: “However, the last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step.”

Local retailers step up

As Joann exits Fairbanks, local and national alternatives remain. Big-box stores like Walmart and Michael’s offer basic supplies. For specialty items and higher-end products, residents can turn to locally owned businesses such as Yarn Over (59 College Road), Northern Threads Inc. (875 University Ave. South) and Calypso Wool (4780 Old Nenana Highway). Seasonal bazaars and pop-up markets also provide handmade materials and tools for dedicated creators.

As of now, remaining inventory at the Fairbanks Joann store is marked down between 20% and 80%. The store remains open during its final weeks, welcoming customers hoping for one last deal.