HUDSON, Ohio – Jan. 15, 2025 – JOANN Inc., the longtime leader in sewing and craft supplies, has filed for voluntary Chapter 11 bankruptcy in a move to facilitate a court-supervised sale process aimed at maximizing business value. Despite the filing, JOANN stores and JOANN.com will remain open, allowing customers to continue shopping as usual.
The bankruptcy filing in the U.S. Bankruptcy Court for the District of Delaware comes as the company faces financial struggles brought on by a shifting retail landscape, supply chain issues, and declining inventory levels. Gordon Brothers Retail Partners, LLC has been named the “stalking horse” bidder, meaning it has set the minimum bid for JOANN’s assets, though the company is open to higher and better offers.
CEO: ‘The Best Course of Action’
Michael Prendergast, interim CEO of JOANN, said the decision to file for bankruptcy was difficult but necessary.
“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,” Prendergast said in a statement.
The company emphasized that team members will continue to receive pay and benefits and that it is seeking court approval to use cash reserves to keep operations running.
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Store Closures Across Michigan
While JOANN’s business remains operational, several Michigan locations will be closing as part of the restructuring process. The following stores are set to shut down:
- Metro Detroit: Allen Park, Auburn Hills, Bloomfield Hills, Brighton, Burton, Canton, Chesterfield, Madison Heights, Novi, Rochester Hills, Roseville, Shelby Township, Taylor, Ypsilanti
- Mid-Michigan: Flint, Grandville, Lansing (Mall Court location), Lapeer, Midland, Saginaw
- West Michigan & Northern Michigan: Battle Creek, Benton Harbor, Big Rapids, Essexville, Fort Gratiot, Grand Rapids (Century Center), Holland, Jackson, Muskegon (Norton Shores), Petoskey, Traverse City
- Other Cities: Adrian, Alpena, Ann Arbor, Portage, White Lake
Meanwhile, eight Michigan locations will remain open, including stores in Comstock Park, Grand Rapids, Lansing (W. Saginaw St.), Livonia, Mt. Pleasant, Portage, Traverse City, and White Lake.
What’s Next for JOANN?
JOANN, which has served crafters and sewing enthusiasts for more than 80 years, hopes to find a buyer that will allow the company to continue operating. If multiple bids are submitted, an auction process will be conducted to determine the final buyer.
The company is working with Kirkland & Ellis as legal counsel, Centerview Partners LLC as financial advisor, and Alvarez & Marsal North America, LLC as restructuring advisor. Updates on the case will be available at JOANNRestructuring.com.
Despite the bankruptcy filing, JOANN leaders remain optimistic about the company’s future.
“We remain committed to continuing to support [our team members] and serving our customers—the sewists, quilters, crocheters, crafters, and other creative enthusiasts we have served for more than 80 years—during the process,” Prendergast said.
Customers looking for more information can visit https://cases.ra.kroll.com/Joann2025 or call (844) 712-2239.
