I have been hearing the Walmart closing fabric thing for a few years now. The Walmart near my house still has fabric, but the new ones don't. They are still getting stuff in, I buy some for charity quilts and it is $2 a yard, and they keep refreshing the stock. I heard they were going to dump yarn, but then more comes in.
Some say they won't sell near a Joann, but my Walmart is in the same shopping center as Joann, about a mile from Hobby Lobby.
The ladies in my store say no way they are closing fabric, but someone always knows someone who says it is going. Like I said, I have heard this for years, but will believe it when I see it.