JoAnn Fabrics fans seek to stitch void left by private equity with crafts co-op
US crafters are looking to build a communal network to replace the company after it was bankrupted by private equity investors in 2025
TL;DR
- JoAnn Fabrics, a vital hub for small businesses and crafters, was bankrupted in 2025 by private equity investors.
- Fans are exploring the creation of a member-owned or worker-owned cooperative to recreate the essence of JoAnn's community and support craft businesses.
- The initiative aims to preserve individually owned businesses and their skills, providing an alternative to private equity's impact on capitalism.
- The cooperative model is gaining momentum in the US, with examples like REI, Ace Hardware, and Land O'Lakes, and a rise in worker-backed cooperatives and employee stock ownership plans (ESOPs).
- Demographic shifts, particularly the retirement of baby boomer small business owners, are creating opportunities for cooperatives to acquire businesses and maintain community roots.
- The success of cooperatives like Ward's Lumber and the model of REI are seen as inspirations for the potential JoAnn's revival.