Craft Cooperative Movement Has Grown Following Retail Closures

As major craft retailers shutter locations, hobbyists and workers are looking toward new member-owned cooperative models.

Updated on Sept. 24, 2026 in Local Shops

Screen-print poster illustration of fabric shears, thread spools, and textile swatches on a workbench, evoking a sense of community craft preservation. — Following widespread retail closures, community organizers are spearheading a national movement to form member-owned craft and fabric cooperatives to preserve local retail access. AI Illustration. Upload story photo >

Live Poll

Do you believe member-owned cooperatives can effectively replace traditional corporate retail in your local community?

Following the bankruptcy and closure of approximately 800 JoAnn Fabrics stores, organizer Sandy McClenahan has launched a national effort to establish a new craft and fabric cooperative. The initiative has already garnered interest from individuals across all 50 states.

Why it matters

The shift toward worker-owned models comes as small business stability becomes a major household concern, especially as baby boomers prepare to transfer an estimated $5 trillion in assets. This transition aims to preserve local craft skills and retail access in communities once served by major chains.

The effort responds to the closure of 800 JoAnn Fabrics stores that previously generated over $2 billion in annual revenue. Nationwide, there are currently 30,000 cooperatives operating, supported by a growing legislative framework for employee stock ownership.

The players

Sandy McClenahan

An organizer and advocate spearheading the initiative to launch a new national craft and fabric cooperative.

JoAnn Fabrics

A long-standing major national craft retailer that generated over $2 billion in annual revenue before filing for bankruptcy in 2025.

Leonard Green & Partners

An investment firm that acquired JoAnn Fabrics prior to the recent widespread store closures.

The details

The proposed cooperative model seeks to preserve independent retail and craft skills by utilizing a member-owned structure, similar to successful transitions seen in Upstate New York. This movement is buoyed by federal legislation passed on September 16, 2026, which simplifies the creation of employee stock ownership plans. The organizational effort began with a survey distributed by McClenahan to gauge interest and determine the viability of a national member-owned network.

1940s: JoAnn Fabrics was founded in Cleveland.
2014: 315 worker-backed cooperatives existed nationwide.
2024: The number of worker-backed cooperatives reached 820.
2025: JoAnn Fabrics declared bankruptcy.
September 16, 2026: Federal legislation passed regarding employee ownership.

The Home Front

This development follows a trend of small businesses pivoting to employee ownership to counter the instability of traditional retail models. It marks a significant shift as 40 percent of small businesses nationwide are currently held by baby boomers looking to exit the market.

If you rely on local retail for craft supplies, track the progress of this national cooperative survey for opportunities to support a member-owned shop in your region. Consider auditing your own household inventory of crafting equipment and documenting serial numbers or purchase dates for high-value items.

The takeaway

The closure of large retail chains is accelerating the transition toward community-based, member-owned business models. Hobbyists should keep an eye on local business listings and regional cooperative announcements to see how these new structures fill the gaps left by previous retailers.