Going-out-of-business sales begin after bankruptcy forces closure of multiple Michigan Joann stores

ROCHESTER HILLS — After years of supplying sewing, yarn, and a host of other art supplies to crafters across the country, Joann Fabrics will be closing over 500 of its 800 locations nationwide — including many in Michigan.

Of about 41 stores in the state, 33 are slated to close — including locations in Rochester Hills, Auburn Hills, Shelby Township, Bloomfield Hills, Madison Heights, Roseville, Novi and Groose Pointe Farms. According to the Joann restructuring site, store closures will occur over the next few months, although officials said some stores may close within a shorter or longer time period.

The only Joann stores in metro Detroit that will remain open, officials said, will be in Livonia and White Lake Township.

The fabric and crafts retailer, which has been in business for over 80 years, has been struggling for years. Joann initially filed for bankruptcy in March 2024, but stayed afloat by choosing to go private.

In January, the company again filed for Chapter 11 bankruptcy — the second time in less than a year.

“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.”

The company received court approval to begin closing stores in February.

“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.”

Over the weekend, shoppers piled into the Rochester Hills Joann Fabrics to stock up on crafting supplies at the start of going-out-of-business sales. At press time, most items were discounted between 20-25% off, with deeper reductions expected in the coming weeks.

Loyal Joann customer Anna Powell, 34, of Rochester Hills, said she was upset to hear of the closing. Powell frequents the store, which is close to her home, for yarn for various knitting and crocheting projects.

“It’s sad. Obviously, there is a customer base, so I hope someone comes to sweep that up,” she said.

At the Rochester Hills store, an employee said she couldn’t comment on the closures. A store manager also declined to comment.