Joann Fabric, With 40 MI Locations, Files For Bankruptcy

MICHIGAN — The fabric and craft retailer Joann, which has 40 stores in Michigan, has filed for bankruptcy as it struggles to recover from pandemic losses and a change in customer spending habits.

All of its 850 stores will remain open during Chapter 11 bankruptcy proceedings, the 81-year-old Ohio-based retailer said in a statement Monday. Joann has stores in the following Michigan locations:

Adrian
Allen Park
Alpena
Ann Arbor
Auburn Hills
Battle Creek
Benton Harbor
Big Rapids
Bloomfield Hills
Brighton
Burton
Canton
Chesterfield
Comstock Park
Essexville
Flint
Fort Gratiot
Grand Rapids
Grandville
Grosse Pointe
Holland
Jackson
Lansing
Lapeer
Livonia
Madison Heights
Midland
Mount Pleasant
Norton Shores
Novi
Petoskey
Portage
Rochester Hills
Roseville
Saginaw
Shelby Township
Taylor
Traverse City
White Lake
Ypsilanti

The company said it has acquired $132 million in new funding. The company plans to use this funding to reduce its debt by approximately $505 million. Over the past few years, the company's debt has climbed to $1 billion. Sales had slumped after a jump during the pandemic, when Americans were isolated in their homes and spent more money on sewing and craft supplies. Due to the subsequent inflation, many people had to cut back on their discretionary spending.

Joann customers won’t see any disruption of service, and the company “remains as focused as ever on providing customers with quality products and services that inspire their creativity,” according to the statement.

“This agreement is a significant step forward in addressing Joann’s capital structure needs, and it will provide us with the financial resources and flexibility necessary to continue to deliver best-in-class product assortments and enhance the customer experience wherever they are shopping with us,” Scott Sekella, the company’s chief financial officer, said in the statement.