Bankruptcy forcing closure of multiple Joann stores in Michigan

GROSSE POINTE FARMS — Crafters, knitters and parents looking for project materials for their kids will soon need to buy their supplies elsewhere.

The Joann store in Grosse Pointe Farms and most other locations in the area are going to be shuttered. As part of the Chapter 11 bankruptcy process, the company filed a motion Feb. 12 seeking court authority to start closing roughly 500 stores around the country.

Of about 41 stores in Michigan, 33 are slated to close, including almost all stores in metro Detroit; among them are the ones in Roseville, Novi, Shelby Township, Madison Heights, Rochester Hills and Bloomfield Hills. It wasn’t known at press time how long these stores would remain open.

Once the closures occur, the only stores in metro Detroit that will remain open will be the locations in Livonia and White Lake Township.

“This was a very difficult decision to make, given the major impact we know it will have on our Team Members, our customers and all of the communities we serve,” a Joann spokesperson said in a prepared statement issued Feb. 12. “A careful analysis of store performance and future strategic fit for the Company determined which stores should remain operating as usual at this time. Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for JOANN.”

On Jan. 15, Joann Inc. launched voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware. It was announced at that time that Gordon Brothers Retail Partners LLC would serve as the stalking horse bidder, meaning that they were the first bidder to vie for the bankrupt company and its assets.

“Since becoming a private company in April (2024), the Board and management team have continued to execute on top- and bottom-line initiatives to manage costs and drive value,” interim Joann CEO Michael Prendergast said in a press release. “However, the last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step. After carefully reviewing all available strategic paths, we have determined that initiating a court-supervised sale process is the best course of action to maximize the value of the business. We hope that this process enables us to find a path that would allow JOANN to continue operating as a going concern.”

Shoppers at the Grosse Pointe Farms store — many of whom hadn’t yet heard the news about the store’s fate — were upset.

Camila Rubio, of Harper Woods, said she and her 4-year-old daughter are frequent Joann shoppers. Her daughter loves the crafts and materials for projects, such as glitter.

“That is so sad,” Rubio said upon learning the store would be closing. “We love it here.”

Rubio said she could find things at reasonable prices at Joann, and said they had a good selection of merchandise.

“They have everything you need,” Rubio said. “I feel sorry for everybody in the community, because they need this store.”

While online shopping is an option, Rubio said she needs to see “the colors, the texture” in person — something the internet can’t replicate.

At the Grosse Pointe Farms store, an employee said liquidation sales were starting Saturday, Feb. 15. The employee said she couldn’t comment on the closures.

Joann Inc. has been in business for more than 80 years.