OMB APPROVAL

OMB Number: 3235-0145

Expires: February 28, 2009

Estimated average burden hours per response...14.5

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange Act of 1934
(Amendment No. 3 )*

Jo-Ann Stores, Inc.

(Name of Issuer)

Common Stock, without par value

(Title of Class of Securities)

47758P307

(CUSIP Number)

Tennenbaum Capital Partners, LLC
2951 28th Street, Suite 1000
Santa Monica, California 90405
(310) 566-1000

(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)

March 13, 2007

(Date of Event Which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. o

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.

* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

CUSIP No. 47758P307  Page 2  of  6 

1	NAMES OF REPORTING PERSONS: Tennenbaum Capital Partners, LLC (1)
	I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY):
	95-4759860
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):
	(a)   o
	(b)   o
3	SEC USE ONLY:
4	SOURCE OF FUNDS (SEE INSTRUCTIONS):
	AF
5	CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e):
	o
6	CITIZENSHIP OR PLACE OF ORGANIZATION:
	Delaware
		7	SOLE VOTING POWER:
NUMBER OF			0 shares
SHARES		8	SHARED VOTING POWER:
BENEFICIALLY
OWNED BY			0 shares
EACH		9	SOLE DISPOSITIVE POWER:
REPORTING
PERSON			0 shares
WITH		10	SHARED DISPOSITIVE POWER:
			0 shares
11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:
	0 shares
12	CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS):
	o
13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11):
	0%
14	TYPE OF REPORTING PERSON (SEE INSTRUCTIONS):
	OO

(1) Tennenbaum Capital Partners, LLC serves as investment advisor to, inter alia, Special Value Opportunities Fund, LLC, a Delaware limited liability company (“SVOF”), and Special Value Expansion Fund, LLC, a Delaware limited liability company (“SVEF”), which are the registered holders of the shares of Common Stock of Jo-Ann Stores, Inc. beneficially owned by Tennenbaum Capital Partners, LLC.

CUSIP No. 47758P307  Page 3  of  6 

1	NAMES OF REPORTING PERSONS: Michael E. Tennenbaum
	I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY):
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):
	(a)   o
	(b)   o
3	SEC USE ONLY:
4	SOURCE OF FUNDS (SEE INSTRUCTIONS):
	AF
5	CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e):
	o
6	CITIZENSHIP OR PLACE OF ORGANIZATION:
	United States
		7	SOLE VOTING POWER:
NUMBER OF			0 shares
SHARES		8	SHARED VOTING POWER:
BENEFICIALLY
OWNED BY			0 shares
EACH		9	SOLE DISPOSITIVE POWER:
REPORTING
PERSON			0 shares
WITH		10	SHARED DISPOSITIVE POWER:
			0 shares
11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:
	0 shares
12	CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS):
	o
13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11):
	0%
14	TYPE OF REPORTING PERSON (SEE INSTRUCTIONS):
	IN

CUSIP No. 47758P307  Page 4  of  6 

1	NAMES OF REPORTING PERSONS: Tennenbaum & Co., LLC
	I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY):
	95-4587347
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):
	(a)   o
	(b)   o
3	SEC USE ONLY:
4	SOURCE OF FUNDS (SEE INSTRUCTIONS):
	AF
5	CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e):
	o
6	CITIZENSHIP OR PLACE OF ORGANIZATION:
	Delaware
		7	SOLE VOTING POWER:
NUMBER OF			0 shares
SHARES		8	SHARED VOTING POWER:
BENEFICIALLY
OWNED BY			0 shares
EACH		9	SOLE DISPOSITIVE POWER:
REPORTING
PERSON			0 shares
WITH		10	SHARED DISPOSITIVE POWER:
			0 shares
11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:
	0 shares
12	CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS):
	o
13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11):
	0%
14	TYPE OF REPORTING PERSON (SEE INSTRUCTIONS):
	OO

CUSIP No. 47758P307  Page 5  of  6 

          This Amendment No. 3 to Schedule 13D is being filed on behalf of the undersigned as an amendment to the initial Statement on Schedule 13D filed with the Securities and Exchange Commission (the “Commission”) on May 11, 2006, as amended by Amendment No. 1 to such Statement filed with the Commission on May 15, 2006 and Amendment No. 2 to such Statement filed with the Commission on January 11, 2007 (together, the “Schedule 13D”), relating to shares of Common Stock, without par value (the “Common Stock”), of Jo-Ann Stores, Inc., an Ohio corporation (the “Issuer”). Terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Schedule 13D. The Schedule 13D is hereby further amended and supplemented as follows:

Item 5. Interest in Securities of the Issuer.

          The information in Item 5 is hereby amended and restated as follows:

          (a)-(b) The Reporting Persons no longer own any shares of Common Stock of the Issuer.

          (c) The following transactions with respect to the Shares were open market sales on the New York Stock Exchange consummated by the Reporting Persons (or their affiliates) within the 60-day period prior to the filing of this Amendment No. 3 to Schedule 13D:

Date	Seller	Shares of Common Stock		Price Per Share
3/13/07	SVOF		248,815	$	26.0017
3/13/07	SVEF		104,985	$	26.0017
3/14/07	SVOF		270,616	$	26.0052
3/14/07	SVEF		114,184	$	26.0052
3/15/07	SVOF		263,584	$	25.1564
3/15/07	SVEF		111,216	$	25.1564
3/16/07	SVOF		1,213,132	$	23.9000
3/16/07	SVEF		511,868	$	23.9000

          (d) Not applicable.

          (e) The Reporting Persons ceased to be the beneficial owners of more than five percent of the Common Stock on March 16, 2007.

CUSIP No. 47758P307  Page 6  of  6 

SIGNATURE

          After reasonable inquiry and to the best of such Reporting Person’s knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.

Dated: March 16, 2007	TENNENBAUM CAPITAL PARTNERS, LLC, a Delaware limited liability company
	By:		Tennenbaum & Co., LLC
	Its:		Managing Member
	TENNENBAUM & CO., LLC, a Delaware limited liability company
	Each of the above by:
	/s/ Michael E. Tennenbaum*
	Name:		Michael E. Tennenbaum
	Its:		Managing Member
	MICHAEL E. TENNENBAUM
	/s/ Michael E. Tennenbaum*
	Michael E. Tennenbaum
	*By:	/s/ David A. Hollander
			David A. Hollander
			Attorney-in-fact