Gigantic Craft Retailer Faces Bankruptcy & Michigan Store Closures

Michigan crafters listen up! One of the most iconic crafting giants is facing some serious uncertainty due to financial woes, and this one could be a game changer.

Reports indicate craft store giant JOANN Fabrics, with 41 stores scattered across Michigan, is teetering on the brink of bankruptcy. Bloomberg reported that Joann Inc. is in talks with lenders to enter Chapter 11 bankruptcy to decrease debt. The news is leaving shoppers wondering what the fate will be of the 815 JOANN Fabric & Craft stores located across the country.

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For decades, Joann Fabrics has been more than just a store, it's been our haven for everything DIY. Opened in 1943, it's hard to imagine a town without a JOANNs.  There are locations in 49 states and 716 cities across the United States.

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According to Bloomberg News, JOANN could file for bankruptcy as early as this week. Indications are that once Chapter 11 is filed part of the restructuring will focus on trimming costs so some store closings could be in the future with the aim being on underperforming or more costly locations off the books.

If the filing follows through, JOANN will join other national notable chains facing hardship.  In the past 12 months, we have seen the Christmas Tree Shops and Bed Bath & Beyond declare bankruptcy and shutter all of their locations.  Rite Aid is closing many of its stores due to bankruptcy and retail giant Macy's recently announced major closures.

The filing of Chapter 11 by JOANN is still being discussed, and we will let you know as things progress and what, if any, of Michigan's 41 stores will face closure.