JoAnn Fabrics Fans Launch Craft Co-op After Private Equity 2026

JoAnn Fabrics fans are seeking to stitch together a void left by private equity with a new crafts co-op. The beloved retailer, which filed for bankruptcy in 2025 after being acquired by Leonard Green & Partners, closed its 800 stores, leaving millions of crafters without a local hub. Now, a grassroots movement aims to bring back the essence of JoAnn through a member-owned cooperative.

The Rise and Fall of JoAnn Fabrics

Founded in the 1940s by German immigrants in Cleveland, Ohio, JoAnn Fabrics grew into a national chain that served as a vital resource for small businesses—wedding dress makers, upholsterers, milliners, and rug repairers. It taught generations to make, fix, and craft. But like hundreds of US companies in 2025, JoAnn fell victim to private equity investors who loaded it with debt and stripped its assets. The closure sparked an outpouring of grief, with fans memorializing the store in videos and even Halloween costumes.

A Craft Co-op to Fill the Void

Sandy McClenahan, a 35-year-old legal assistant and hat maker, is leading the charge. She published a survey last month titled “A craft and fabric co-op, owned by us.” The response was overwhelming: hundreds of replies from every US state, including 30 people interested in becoming founding members. “The ultimate big dream is to try to create an ecosystem that connects all of these people in the crafting world,” McClenahan said. “The model we’re investigating is how member-owned and/or worker-owned co-ops can help do that.”

How a Co-op Works

A cooperative is owned and democratically controlled by its members, who share profits and decision-making. Unlike traditional corporations, co-ops prioritize people over profit. This structure could protect a revived craft store from the fate that befell JoAnn.

Private Equity vs. Cooperative Model

The contrast between private equity ownership and a cooperative model is stark. Below is a comparison of key attributes:

Key Takeaways

• JoAnn Fabrics closed after private equity firm Leonard Green & Partners bankrupted the chain.
• Fans are exploring a member-owned co-op to revive the craft store experience.
• A survey by Sandy McClenahan received hundreds of responses from all 50 states.
• Co-ops prioritize community and member benefits over investor profits.
• The movement aims to create a sustainable ecosystem for crafters and small businesses.

The Road Ahead

While the co-op is still in the planning stages, the enthusiasm is palpable. McClenahan and her allies are researching legal structures, funding options, and potential locations. They envision a store that not only sells fabric and supplies but also hosts workshops, supports local artisans, and fosters a vibrant crafting community. “It wouldn’t be just about buying fabric,” McClenahan emphasized. “It’s about creating a space where people can learn, share, and grow together.”

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