Exhibit 99

JO-ANN STORES, INC. SAVINGS PLAN 401(k)

Financial Statements
As of December 31, 2000 and 1999

Together With Report of Independent Public Accountants

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Advisory Committee of Jo-Ann Stores, Inc.
Savings Plan 401(k):

We have audited the accompanying statements of net assets available for plan
benefits of Jo-Ann Stores, Inc. Savings Plan 401(k) (the Plan) as of December
31, 2000 and 1999, and the related statement of changes in net assets available
for plan benefits for the year ended December 31, 2000, as listed in the
accompanying index. These financial statements and the supplemental schedules
referred to below are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements and
supplemental schedules based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan as
of December 31, 2000 and 1999, and the changes in its net assets available for
plan benefits for the year ended December 31, 2000, in conformity with
accounting principles generally accepted in the United States.

Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of assets held
for investment purposes (Schedule I) and schedule of 5% reportable transactions
(Schedule II) as listed in the accompanying index, are presented for purposes of
additional analysis and are not a required part of the basic financial
statements but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The supplemental schedules have been
subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.

Cleveland, Ohio,
June 13, 2001.

JO-ANN STORES, INC. SAVINGS PLAN 401(k)

Index to Financial Statements
December 31, 2000 and 1999

Statements of Net Assets Available for Plan Benefits as of December 31, 2000
and 1999

Statement of Changes in Net Assets Available for Plan Benefits for the Year
Ended December 31, 2000

Notes to Financial Statements

Schedule I--Item 4i--Schedule of Assets Held for Investment Purposes as of
December 31, 2000

Schedule II--Item 4j--Schedule of 5% Reportable Transactions for the Year Ended
December 31, 2000

JO-ANN STORES, INC. SAVINGS PLAN 401(k)

Statements of Net Assets Available for Plan Benefits
as of December 31, 2000 and 1999

2000 1999
----------- -----------

ASSETS:
Investments, at market:
Participant directed $28,969,524 $32,740,755
Nonparticipant directed-
Company Stock Fund A 2,219,764 2,620,551
Company Stock Fund B 622,295 1,639,596
----------- -----------

Total investments, at market 31,811,583 37,000,902

Receivables:
Employer contribution 43,024 --
Participant contribution 159,504 --
----------- -----------

Total receivables 202,528 --
----------- -----------

NET ASSETS $32,014,111 $37,000,902
=========== ===========

The accompanying notes to financial statements are an integral part of these
statements.

JO-ANN STORES, INC. SAVINGS PLAN 401(k)

Statement of Changes in Net Assets Available for Plan Benefits
for the Year Ended December 31, 2000

Nonparticipant Directed
--------------------------------
Company Company
Participant Stock Stock
Directed Fund A Fund B Total
------------ ------------ ------------ ------------

INCREASES:
Interest and dividend income $ 627,840 $ 7,356 $ 956 $ 636,152
Employer contributions -- 986,340 -- 986,340
Participant contributions 3,814,748 -- -- 3,814,748
Rollover contributions 271,427 -- -- 271,427
Realized gains on sale of investments 308,988 -- -- 308,988
Other 220 -- -- 220
------------ ------------ ------------ ------------
5,023,223 993,696 956 6,017,875
------------ ------------ ------------ ------------

DECREASES:
Distributions 4,018,346 447,132 178,457 4,643,935
Administrative expenses 182,635 12,761 4,254 199,650
Realized losses on sale of investments -- 325,919 111,811 437,730
Unrealized losses on investments 4,049,147 975,530 697,660 5,722,337
Other 538 476 -- 1,014
------------ ------------ ------------ ------------
8,250,666 1,761,818 992,182 11,004,666
------------ ------------ ------------ ------------

NET DECREASE FOR THE YEAR (3,227,443) (768,122) (991,226) (4,986,791)

NET ASSETS AVAILABLE FOR PLAN BENEFITS,
beginning of year 32,485,890 2,808,215 1,706,797 37,000,902
------------ ------------ ------------ ------------

NET ASSETS AVAILABLE FOR PLAN BENEFITS,
end of year $ 29,258,447 $ 2,040,093 $ 715,571 $ 32,014,111
============ ============ ============ ============

The accompanying notes to financial statements are an integral part of this
statement.

JO-ANN STORES, INC. SAVINGS PLAN 401(k)

Notes to Financial Statements
December 31, 2000 and 1999

1. SUMMARY OF PLAN:
----------------

The original Jo-Ann Stores, Inc. Savings Plan 401(k) (the Plan), formally known
as the Jo-Ann Stores, Inc. Employees' Savings and Profit Sharing Plan, was
adopted as of September 1, 1974, and has been amended on occasion in order to,
among other things, maintain compliance with the requirements of the Employee
Retirement Income Security Act of 1974 (ERISA). Effective July 1, 1998,
employees of the former House of Fabrics, Inc., which was acquired by Jo-Ann
Stores, Inc., (the Company) during 1998, are able to participate in the Plan. On
March 1, 1999, the Company replaced Key Trust Company of Ohio, N.A., as trustee
and administrator of the Plan with Institutional Trust Company, a subsidiary of
Invesco Retirement Plan Services. The principal provisions of the Plan are as
follows:

Eligibility
- -----------

All active employees of the Company and its wholly owned subsidiaries who have
completed at least 1,000 hours of service and are not members of a recognized
collective bargaining organization, are eligible to participate in the Plan.

Deferred Income Contributions
- -----------------------------

Plan participants may elect to defer from 1% to 15% of their compensation,
subject to an annual limitation under the Internal Revenue Code (IRC), and such
amounts will be contributed to the Plan by the Company as deferred income
contributions.

Employer Matching Contributions
- -------------------------------

The Company will contribute to the Plan, subject to the forfeiture provision
outlined below, an adjustable percentage of the deferred income contributions
made by participants (up to a 4% employee deferred income contribution), as well
as such additional amounts as the Board of Directors may determine. These
contributions are allocated among eligible participants after completing one
year of service, in proportion to the deferred income contributions made on
their behalf for such period and credited to their separate accounts.

The Company's matching contribution can range from 0% to 100% and can be
modified prior to the beginning of a month by the Company. For the 2000 and 1999
Plan years, the Company's matching contribution was 50% of the first 4%
contributed by participants. All Company matching contributions are in the form
of common stock of the Company and are invested in the Company Stock Fund A and
Company Stock Fund B.

Company contributions are funded only to the extent that they exceed cumulative
forfeitures of participants terminated from the Plan. Such forfeitures amounted
to approximately $112,000 in 2000. The amount of unutilized forfeitures as of
December 31, 2000 was approximately $16,000.

7
JO-ANN STORES, INC. SAVINGS PLAN 401(k)

Notes to Financial Statements
December 31, 2000 and 1999
Page 2

Investment of Employee Contributions
- ------------------------------------

Under the Plan, each participant selects the manner in which deferred income
contributions to their account are to be invested. With each of the investment
accounts there is risk of loss, although the degree varies by the nature of the
investment. None of the accounts provide for any guarantee against loss.
Participants should refer to the Plan document for a more complete description
of the Plan's investment options. Contributions are invested in 1% increments,
up to 100%, in any one of the following investment options:

a. IRT 500 Index Fund - Investments are made in a portfolio of stocks
attempting to match the Standard & Poor's 500 index with a rate of
return that may fluctuate substantially.

b. AIM Blue Chip Fund - Investments are made in common stocks of
domestic, foreign and multi-national companies believed to have
long-term growth potential.

c. IRT Stable Value Fund - Investments are made in investment contracts
issued by insurance companies and banks providing for stability of
principal and attractive rates of interest.

d. One Group Bond Fund - Investments are made in investment-grade debt
securities issued by corporations and obligations of the U.S.
Government and its agencies or instrumentalities, as well as foreign
debt, dependent upon the prevailing interest rates.

e. Invesco Dynamics Fund - Investments are made in stocks of domestic and
international companies with market capitalizations ranging between
$800 million and $3 billion.

f. Janus Worldwide Fund - Investments are made in common stocks of
foreign issuers, seeking long-term growth of capital in a manner
consistent with the preservation of capital.

g. IRT Intermediate Return Fund - Investments are made in a conservative
combination of stable value, bond and equity funds, seeking a high
total return through current income and capital appreciation.

h. IRT Growth and Income Fund - Investments are made in a moderately
aggressive combination of stable value, bond and equity funds, seeking
a high total return through current income and capital appreciation.

8
JO-ANN STORES, INC. SAVINGS PLAN 401(k)

Notes to Financial Statements
December 31, 2000 and 1999
Page 3

i. IRT Maximum Appreciation Fund - Investments are made in an aggressive
combination of stable value, bond and equity funds, seeking a high
total return through current income and capital appreciation.

j. Company Stock Fund A -- Investments are made in Jo-Ann Stores, Inc.
Class A common stock.

k. Company Stock Fund B -- Investments are made in Jo-Ann Stores, Inc.
Class B common stock.

Participants may change their investment election with respect to future
contributions on a daily basis.

PAYSOP Contributions
- --------------------

Prior to February 1, 1987, the Company made PAYSOP contributions to the Stock
Ownership Fund for each year in an amount equal to the tax credit available
under Section 44G of the IRC. This tax credit was eliminated by the Tax Reform
Act of 1986 and, therefore, the Company no longer makes PAYSOP contributions.
Distributions of the PAYSOP account balances to terminated participants are made
in shares of Company common stock unless otherwise specified by the participant.

Vesting Requirements
- --------------------

Participants' deferred income contributions, together with earnings thereon,
vest immediately. All other Company contributions, plus earnings thereon, vest
over a four-year period based on years of service, as defined by the Plan
agreement. A participant's entire interest in the Plan becomes fully vested upon
his death while employed, attainment of age 65 or permanent and total
disability.

Benefit Payments
- ----------------

Upon termination of service, a participant may elect to receive either a
lump-sum amount or an installment payment equal to the vested portion of his or
her account, as defined by the Plan.

Prior to termination of employment or age 59 1/2, contributions may only be
withdrawn in the event of financial hardship as defined by the IRC.

9
JO-ANN STORES, INC. SAVINGS PLAN 401(k)

Notes to Financial Statements
December 31, 2000 and 1999
Page 4

Participant Loans
- -----------------

Participants may borrow against their vested balances pursuant to the loan
provision of the Plan. The maximum loan amount available to a participant is
fifty percent of their vested account balance not to exceed $50,000. The maximum
term of a loan is five years. Participant loans are repaid through payroll
deductions with interest charged at the prime rate plus one percent. During
2000, interest rates ranged from 8.75% to 10.50%.

Trustee's Fees and Other Expenses
- ---------------------------------

Generally, costs incidental to the purchase and sale of securities, such as
brokerage commissions and stock transfer taxes, are paid by the respective
funds. Other costs and expenses incurred in administering the Plan, including
fees of the trustee are generally paid by the Plan. Certain Plan expenses, such
as audit fees and database access fees, are paid by the Company.

Termination
- -----------

Although it has not expressed any intent to do so, the Company, with the
approval of the Board of Directors, has the right to discontinue its
contributions at any time and to terminate the Plan, subject to the provisions
of ERISA. In the event of Plan termination, participants will become 100% vested
in their accounts.

2. SIGNIFICANT ACCOUNTING POLICIES:
--------------------------------

Basis of Accounting
- -------------------

The accompanying financial statements are prepared on the accrual basis of
accounting.

Valuation of Investments
- ------------------------

The assets included in the Statements of Net Assets Available for Plan Benefits
are stated at their market values as of December 31, 2000 and 1999. Schedule I
summarizes the Plan's investments held at December 31, 2000.

Estimates
- ---------

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases during the
reporting period. Actual results could differ from those estimates.

Reclassification
- ----------------

Certain amounts in the 1999 financial statements have been reclassified to
conform to the current year presentation.

10
JO-ANN STORES, INC. SAVINGS PLAN 401(k)

Notes to Financial Statements
December 31, 2000 and 1999
Page 5

3. TAX STATUS:
-----------

The Internal Revenue Service has determined and informed the Company, by letter
dated February 20, 1997, that the Plan and related trust are designed in
accordance with applicable sections of the IRC. The Plan has been amended since
receiving the determination letter. The Company currently believes that the Plan
is designed and is currently being operated in compliance with the applicable
requirements of the IRC.

4. INVESTMENTS:
------------

The following investments of the Plan exceed 5% of the Plan's net assets
available for plan benefits at December 31, 2000 and 1999.

2000 1999
-------------- ----------------

One Group Bond Fund $1,998,966 $ 2,015,409
AIM Blue Chip Fund 7,065,691 8,561,131
IRT Stable Value Fund 5,448,983 5,492,718
IRT 500 Index Fund 8,228,483 10,247,982
Jo-Ann Stores, Inc. Class A common stock 4,091,484 5,771,933
Jo-Ann Stores, Inc. Class B common stock -- 2,607,069

5. PARTY-IN-INTEREST TRANSACTIONS:
-------------------------------

During the years ended December 31, 2000 and 1999, there were no prohibited
transactions with a party-in-interest, as defined by ERISA.

6. SUBSEQUENT EVENT:
-----------------

Effective June 1, 2001, the House of Fabrics, Inc. 401(k) Plan was merged with
the Plan. The investment options that were offered in the House of Fabrics, Inc.
401(k) Plan are also available in the Plan. As a result, the investments in the
House of Fabrics, Inc. 401(k) Plan were transferred into the same funds that
they were invested in prior to the merger.

Schedule I

JO-ANN STORES, INC. SAVINGS PLAN 401(k)

Item 4i--Schedule of Assets Held for Investment Purposes
as of December 31, 2000

Employer Identification Number: 34-0720629
Plan Number: 001

Description Cost Market Value
- ------------------------------------------------------------- ----------------- -----------------

One Group Bond Fund $1,967,552 $1,998,966
AIM Blue Chip Fund 6,469,194 7,065,691
*Invesco Dynamics Fund 1,436,749 1,364,508
*IRT Stable Value Fund 5,448,983 5,448,983
*IRT 500 Index Fund 7,731,816 8,228,483
*IRT Intermediate Return Fund 195,908 206,451
*IRT Growth and Income Fund 348,432 364,568
*IRT Maximum Appreciation Fund 231,972 238,437
Janus Worldwide Fund 1,438,980 1,166,614
Jo-Ann Stores, Inc. Class A common stock 7,282,720 4,091,484
Jo-Ann Stores, Inc. Class B common stock 2,702,769 1,060,312
*Loan Fund, interest rates varying from 8.75% to 10.50% 577,086 577,086
----------------- -----------------

$35,832,161 $31,811,583
================= =================

*Represents a party-in-interest

The accompanying notes to financial statements are an integral part of this
schedule.

Schedule II

JO-ANN STORES, INC. SAVINGS PLAN 401(k)

Item 4j--Schedule of 5% Reportable Transactions
for the Year Ended December 31, 2000

Employer Identification Number: 34-0720629
Plan Number: 001

Puchase Selling Cost of
Description of Asset Price Price Asset Net Loss
----------------------------------------------- ---------- ----------- ----------- -----------

* Jo-Ann Stores, Inc. Class A common stock $1,799,598 $1,069,955 $1,673,509 $603,554

*Represents a party-in-interest

The accompanying notes to financial statements are an integral part of this
schedule.