Proposed Fabric Cooperative Followed JoAnn Fabrics Closures
Sandy McClenahan has launched a national effort to establish a member-owned craft cooperative.
Updated on Sept. 24, 2026 in Local Shops
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Following the bankruptcy and closure of approximately 800 JoAnn Fabrics locations, Sandy McClenahan initiated a proposal to create a national craft and fabric cooperative. The initiative has already garnered interest from individuals across all 50 states.
Why it matters
The project seeks to preserve essential craft skills and support independent businesses following the mass exit of a major national retailer. It highlights a growing shift toward employee-owned models in the wake of corporate consolidation and retail bankruptcies.
JoAnn Fabrics operated with over $2 billion in annual revenue before filing for bankruptcy in 2025. Currently, there are approximately 30,000 cooperatives operating within the United States.
The players
Sandy McClenahan
She is the organizer leading the initiative to establish a national craft and fabric cooperative.
JoAnn Fabrics
This is a major retail chain that specialized in fabrics and crafts before filing for bankruptcy.
Leonard Green & Partners
This is the private equity firm that acquired JoAnn Fabrics.
The details
McClenahan is utilizing surveys to gauge interest in a member-owned cooperative structure that prioritizes support for independent retailers. This effort comes as existing worker-backed firms have seen significant growth over the past decade, signaling a potential shift in how retail craft services are maintained.
Timeline
1940s: JoAnn Fabrics was founded in Cleveland.
2014: 315 worker-backed cooperatives were active nationwide.
2024: The number of worker-backed cooperatives increased to 820.
2025: JoAnn Fabrics declared bankruptcy.
September 16, 2026: Federal legislation was passed to facilitate employee stock ownership plans.
Culture Shift
The proposal aligns with a broader trend of transitioning small businesses into worker-owned models as baby boomers prepare to exit the market. This shift is expected to accelerate as trillions of dollars in assets transfer across the national economy.
Shoppers may eventually see new, member-owned alternatives to traditional big-box retailers in their own communities. This movement could offer consumers more influence over the availability of craft supplies and the longevity of local specialty stores.
The takeaway
This initiative represents a strategic attempt to reclaim local retail space after corporate store closures. It demonstrates how cooperative business models are becoming a viable alternative for maintaining niche markets and community services.
Further reading
For more on community-based retail initiatives, visit the Local Shops section.
Source note: This article includes information reported by RocketNews.
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Do you believe member-owned cooperatives can effectively replace traditional corporate retail in your local community?
