Seven Northwest and North Central Indiana JOANN Fabric Stores are among a list of 500 stores the chain plans to close.
The retailer announced voluntary Chapter 11 proceedings Jan. 15 in a press release. But it issued a statement Feb. 12 that said the company plans to close stores to maximize the value of the business for a prospective buyer.
“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,” according to a spokesperson for JOANN. “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.”
Store closures in the Region include:
- 715 U.S. Highway 41, Schererville
- 1916 E. 80th Ave., Merrillville
- 4024 Elkhart Road, Goshen
- 4333 Franklin St., Michigan City
- 1406 Pilgrim Lane, Plymouth
- 5612 Grape Road, Mishawaka
- 1131 E. Ireland Road, South Bend
A meeting of creditors will take place Feb. 19, while bidding procedures were considered during a hearing Feb. 14.
The bankruptcy process was started to keep JOANN from closing altogether. The company was made private in April.
“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,” said Michael Prendergast, interim chief executive officer of JOANN, in a press release about the bankruptcy filing. “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.”
JOANN assured customers that stores remain open, and joann.com is shipping orders. Employees also are still being paid. Find updates on the case here.
JOANN was founded 80 years ago at its first location in Cleveland, Ohio. It grew to more than 800 stores in 49 states.
