<PAGE>
                                   FORM 10-Q

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

          [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                   For the quarterly period ended May 4, 2002

                          Commission file number 0-6319

                              JACOBSON STORES INC.
             (Exact name of registrant as specified in its charter)

             Michigan                                    38-0686330
(State or other jurisdiction of incorporation (IRS Employer Identification
          or organization)                               Number)

                   3333 Sargent Road, Jackson, Michigan 49201
          (Address of principal executive offices, including zip code)

                                 (517) 764-6400
              (Registrant's telephone number, including area code)

                                 Not Applicable
              (Former name, former address and former fiscal year,
                          if changed since last report)

              Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                                 Yes [X] No [ ]

              Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.

                          Common Stock ($1 Par Value):
               5,788,209-2/3 Shares outstanding as of May 4, 2002

THIS FILING INCLUDES INTERIM FINANCIAL STATEMENTS AS OF MAY 4, 2002 AND FOR THE
THIRTEEN-WEEKS THEN ENDED THAT HAVE NOT BEEN REVIEWED BY AN INDEPENDENT PUBLIC
ACCOUNTANT BECAUSE THE REGISTRANT DISMISSED ARTHUR ANDERSEN LLP ON MAY 23, 2002
AND HAS NOT ENGAGED A NEW INDEPENDENT PUBLIC ACCOUNTANT. SEE PART I, ITEM 1 FOR
FURTHER DISCUSSION.


<PAGE>
               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                                    FORM 10-Q

                          For Quarter Ended May 4, 2002


                                      INDEX

<TABLE>
<CAPTION>

                                                                                                            Page
<S>                                                                                                         <C>
PART I:       FINANCIAL INFORMATION

         Item 1.    Financial Statements

                    .   Consolidated Balance Sheets -- May 4, 2002 and February 2, 2002                        1

                    .   Consolidated Statements of Earnings - Thirteen Week Periods
                        Ended May 4, 2002 and May 5, 2001                                                      2

                    .   Consolidated Statements of Cash Flows -- Thirteen Week
                        Periods Ended May 4, 2002 and May 5, 2001                                              3

                    .   Notes to Consolidated Financial Statements                                             4

         Item 2.    Management's Discussion and Analysis of Financial
                    Condition and Results of Operations                                                       10

         Item 3.    Quantitative and Qualitative Disclosures About Market Risk                                17

PART II:      OTHER INFORMATION

         Item 1.    Legal Proceedings                                                                         18

         Item 3.    Defaults Upon Senior Securities                                                           18

         Item 6.    Exhibits and Reports on Form 8-K                                                          18


 All items except those set forth above are inapplicable and have been omitted.


SIGNATURES                                                                                                    19
</TABLE>


<PAGE>
THIS FILING INCLUDES INTERIM FINANCIAL STATEMENTS AS OF MAY 4, 2002 AND FOR THE
THIRTEEN-WEEKS THEN ENDED THAT HAVE NOT BEEN REVIEWED BY AN INDEPENDENT PUBLIC
ACCOUNTANT BECAUSE THE REGISTRANT DISMISSED ARTHUR ANDERSEN LLP ON MAY 23, 2002
AND HAS NOT ENGAGED A NEW INDEPENDENT PUBLIC ACCOUNTANT. IF THE COMPANY ENGAGES
A NEW INDEPENDENT PUBLIC ACCOUNTANT, IT INTENDS TO OBTAIN A REVIEW OF SUCH
INTERIM FINANCIAL STATEMENTS PROMPTLY AFTER IT ENGAGES THE NEW ACCOUNTANT AND BY
THE TIME ITS QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDING AUGUST 3, 2002
IS FILED. THE COMPANY INTENDS TO APPLY TO THE SECURITIES AND EXCHANGE COMMISSION
FOR RELIEF FROM ITS PERIODIC REPORTING OBLIGATIONS, HOWEVER, AND IF SUCH RELIEF
IS GRANTED, IT WILL MOST LIKELY NOT ENGAGE A NEW INDEPENDENT PUBLIC ACCOUNTANT
AND NO REVIEW OF THESE INTERIM FINANCIAL STATEMENTS WILL BE PERFORMED. NO
AUDITOR HAS OPINED THAT IT IS NOT AWARE OF ANY MATERIAL MODIFICATIONS THAT
SHOULD BE MADE TO SUCH CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THEM TO
BE IN CONFORMITY WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED
STATES.

               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                 (in thousands)
<TABLE>
<CAPTION>
                                                                                       May 4,
                                                                                        2002         February 2,
                                                                                    (unaudited)         2002
                                                                                    -----------      -----------
<S>                                                                                 <C>              <C>
ASSETS
CURRENT ASSETS:
    Cash and cash equivalents                                                       $     4,098      $       813
    Receivables from customers, net                                                      37,885           45,078
    Vendor prepayments                                                                    7,337            9,578
    Merchandise inventories                                                              55,816           45,778
    Prepaid expenses and other assets                                                     4,474            6,817
    Refundable income taxes                                                               2,375            2,375
                                                                                    -----------      -----------
              Total current assets                                                      111,985          110,439
                                                                                    -----------      -----------
PROPERTY AND EQUIPMENT, NET                                                              88,798           93,733
                                                                                    -----------      -----------
OTHER ASSETS                                                                             20,078           20,971
                                                                                    -----------      -----------
                                                                                    $   220,861      $   225,143
                                                                                    ===========      ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
    Revolving credit facility                                                       $    63,887      $    74,492
    Accounts payable                                                                      6,916            3,607
    Accrued expenses                                                                     14,723           13,195
                                                                                    -----------      -----------
              Total current liabilities                                                  85,526           91,294
                                                                                    -----------      -----------
LIABILITIES SUBJECT TO COMPROMISE                                                       115,108          114,469
                                                                                    -----------      -----------
OTHER LIABILITIES                                                                         4,545            4,981
                                                                                    -----------      -----------
SHAREHOLDERS' EQUITY:
    Common stock                                                                          5,975            5,975
    Paid-in surplus                                                                       7,201            7,201
    Retained earnings                                                                     2,905            1,622
    Treasury stock                                                                         (399)            (399)
                                                                                    -----------      -----------
                                                                                         15,682           14,399
                                                                                    -----------      -----------
                                                                                    $   220,861      $   225,143
                                                                                    ===========      ===========
</TABLE>

        The accompanying notes are an integral part of these statements.

                                      -1-
<PAGE>



               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                       CONSOLIDATED STATEMENTS OF EARNINGS
                      (in thousands except per share data)
                                   (unaudited)

<TABLE>
<CAPTION>


                                                                                   Thirteen Weeks Ended
                                                                                   --------------------
                                                                                   May 4,        May 5,
                                                                                    2002          2001
                                                                                  ----------    -------
<S>                                                                               <C>          <C>
         NET SALES                                                                $ 78,917     $ 113,408
                                                                                  --------     ---------

         COSTS AND EXPENSES:
              Cost of merchandise sold, buying and
                  occupancy expenses                                                53,464        73,126
              Selling, general and administrative expenses                          29,123        35,905
              Interest expense, net                                                  1,627         2,519
              Gain on sale of property                                              (9,385)          -
                                                                                  --------     ---------

                        Total costs and expenses                                    74,829       111,550
                                                                                  --------     ---------

         EARNINGS BEFORE REORGANIZATION
         COSTS AND INCOME TAXES                                                      4,088         1,858

         REORGANIZATION COSTS                                                        2,805             -
                                                                                  --------     ---------

         EARNINGS BEFORE INCOME TAXES                                                1,283         1,858

         PROVISION FOR INCOME TAXES                                                      -           650
                                                                                  --------     ---------

         NET EARNINGS                                                             $  1,283     $   1,208
                                                                                  ========     =========



         EARNINGS PER COMMON SHARE:
              Basic                                                                  $0.22         $0.21
                                                                                     =====         =====
              Diluted                                                                $0.22         $0.21
                                                                                     =====         =====
</TABLE>

        The accompanying notes are an integral part of these statements.

                                      -2-
<PAGE>


               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)
                                   (unaudited)
<TABLE>
<CAPTION>
                                                                                        Thirteen Weeks Ended
                                                                                   ------------------------------
                                                                                       May 4,           May 5,
                                                                                        2002             2001
                                                                                   -------------      ----------
<S>                                                                                <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net earnings                                                                   $   1,283        $   1,208
    Gain on sale of property                                                          (9,385)
    Adjustments to reconcile net earnings to cash
    provided by (used in) operating activities:
       Depreciation and amortization                                                   2,820            2,405
       Other liabilities                                                                (438)             (23)

       Change in:
          Receivables from customers, net                                              7,193             (532)
          Merchandise inventories                                                    (10,038)          (2,882)
          Prepaid expenses and other assets                                            3,549              (10)
          Accounts payable and accrued expenses                                        6,519           (7,586)
          Current income taxes                                                             -            2,721
                                                                                   ----------       ----------


                  Net cash provided by (used in) operating activities                  1,504           (4,699)
                                                                                   ----------       ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Proceeds from sale of property                                                   11,503                -
     Additions to property and equipment                                                  (2)          (1,781)
     Other non-current assets                                                            893             (674)
                                                                                   ----------       ----------

                  Net cash provided by (used in) investing activities                 12,394           (2,455)
                                                                                   ----------       ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Borrowings (repayments) under revolving facilities, net                          (10,605)           7,756
    Payments on debt and capital leases                                                   (8)            (933)
                                                                                   ----------       ----------

                  Net cash provided by (used in) financing activities                (10,613)           6,823
                                                                                   ----------       ----------

INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS                                                                            3,285             (331)
                                                                                   ----------       ----------

    Cash and cash equivalents, beginning of period                                       813            1,207
                                                                                   ----------       ----------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                           $   4,098        $     876
                                                                                   ==========       ==========
</TABLE>

        The accompanying notes are an integral part of these statements.

                                      -3-
<PAGE>

               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)
                         For Quarter Ended May 4, 2002


         ON MAY 23, 2002 THE COMPANY DISMISSED ARTHUR ANDERSEN LLP ("ANDERSEN")
         AS ITS INDEPENDENT PUBLIC ACCOUNTANT AND HAS NOT ENGAGED A NEW
         INDEPENDENT PUBLIC ACCOUNTANT. ACCORDINGLY, A REVIEW USING PROFESSIONAL
         STANDARDS AND PROCEDURES FOR CONDUCTING SUCH REVIEWS, AS ESTABLISHED BY
         GENERALLY ACCEPTED AUDITING STANDARDS, AS MAY BE MODIFIED OR
         SUPPLEMENTED BY THE SECURITIES AND EXCHANGE COMMISSION, HAS NOT BEEN
         CONDUCTED BY AN INDEPENDENT PUBLIC ACCOUNTANT OF THE CONDENSED
         CONSOLIDATED FINANCIAL STATEMENTS AS OF MAY 4, 2002 AND FOR THE
         THIRTEEN WEEKS THEN ENDED, NOR HAS AN INDEPENDENT PUBLIC ACCOUNTANT
         ISSUED A REVIEW REPORT OPINING THAT IT IS NOT AWARE OF ANY MATERIAL
         MODIFICATIONS THAT SHOULD BE MADE TO THE INTERIM FINANCIAL STATEMENTS
         FOR SUCH FINANCIAL STATEMENTS TO BE PRESENTED IN CONFORMITY WITH
         ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES. IF THE
         COMPANY ENGAGES A NEW INDEPENDENT PUBLIC ACCOUNTANT, IT INTENDS TO
         OBTAIN A REVIEW OF SUCH INTERIM FINANCIAL STATEMENTS PROMPTLY AFTER IT
         ENGAGES THE NEW ACCOUNTANT AND BY THE TIME ITS QUARTERLY REPORT ON FORM
         10-Q FOR THE QUARTER ENDING AUGUST 3, 2002 IS FILED. THE COMPANY
         INTENDS TO APPLY TO THE SECURITIES AND EXCHANGE COMMISSION FOR RELIEF
         FROM ITS PERIODIC REPORTING OBLIGATIONS, HOWEVER, AND IF SUCH RELIEF IS
         GRANTED, IT WILL MOST LIKELY NOT ENGAGE A NEW INDEPENDENT PUBLIC
         ACCOUNTANT AND NO REVIEW OF THESE INTERIM FINANCIAL STATEMENTS WILL BE
         PERFORMED.

         The accompanying unaudited condensed consolidated financial statements
         have been prepared in accordance with accounting principles generally
         accepted in the United States of America ("generally accepted
         accounting principles") for interim financial information and with the
         instructions to Form 10-Q and Article 10 of Regulation S-X.
         Accordingly, they do not include all of the information and footnotes
         required by generally accepted accounting principles for complete
         financial statements. In the opinion of management, all adjustments
         which are necessary for a fair statement of the results for the interim
         period presented have been included and are of a normal recurring
         nature, except for the reclassification of liabilities subject to
         compromise as described in Note (9), and except for the reserve for
         deferred taxes as described in Note (8).

         The accompanying consolidated financial statements have been prepared
         on a going-concern basis assuming the realization of assets and
         liquidation of post-petition liabilities in the ordinary course of
         business, which is not likely. See Note (1).

         The consolidated balance sheet at February 2, 2002 has been derived
         from the audited financial statements at that date but does not include
         all the information and footnotes required by generally accepted
         accounting principles for complete financial statements. For further
         information, refer to the consolidated financial statements and
         footnotes thereto included in the Company's Annual Report on Form 10-K
         for the year ended February 2, 2002.

         Because of the nature of the specialty department store business, the
         results for the thirteen week periods ended May 4, 2002 and May 5, 2001
         (which do not include the Christmas holiday season) are not indicative
         of the results for the year as a whole.

                                      -4-

<PAGE>

               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)
                         For Quarter Ended May 4, 2002




   (1)   CHAPTER 11 REORGANIZATION AND FINANCING

         On January 15, 2002, the Company filed a voluntary petition for relief
         under Chapter 11 of the United States Bankruptcy Code in the United
         States Bankruptcy Court for the Eastern District of Michigan, Southern
         Division. Under the protection of Chapter 11, the Company is managing
         its affairs and operating its business as a debtor-in-possession. As a
         debtor-in-possession, the Company may not engage in transactions
         outside the ordinary course of business without approval of the
         Bankruptcy Court after notice and a hearing. In addition, without
         Bankruptcy Court approval, the Company is generally prohibited from
         paying, and creditors are prohibited from attempting to collect, claims
         or debts arising pre-petition. In the first quarter of 2002, the
         Company recognized $2,805,000 of bankruptcy related professional fees.

         As of April 6, 2002, the Company was not in compliance with a covenant
         under its Debtor In Possession Loan and Security Agreement concerning
         limits on vendor payments. The Company obtained a waiver of this
         covenant violation for the period ended April 6, 2002. As of May 4,
         2002, the Company again was not in compliance with the limits on vendor
         payments under its Debtor In Possession Loan and Security Agreement,
         and as of June 2, 2002, the Company was not in compliance with a
         covenant under its Debtor In Possession Loan and Security Agreement
         concerning minimum sales. The lenders have not waived the May 4, 2002
         or June 2, 2002 violations. As a result, the lenders have no obligation
         to make any revolving credit loans or issue, extend or renew letters of
         credit under the DIP facility, although they may do so in their sole
         and absolute discretion, and the loans under the DIP facility bear
         interest at the default rate of interest (two percent higher than the
         previous rate) beginning June 1, 2002. Also, the lenders may, among
         other things, require immediate payment of this indebtedness and
         foreclose on, and sell, the Company's assets if the Company does not
         repay the indebtedness in full.

         For several months, the Company and its financial advisors have been
         exploring the Company's strategic alternatives, but have not received a
         proposal to purchase the business as a going concern. As a result of
         the defaults described above, the Company, with the approval of the
         lenders under the Debtor In Possession Loan and Security Agreement,
         filed a motion on June 28, 2002, with the Bankruptcy Court that, if
         approved, would establish a procedure and schedule for the Company to
         solicit and accept bids to either sell the business as a going concern
         or to liquidate it. While the Company would prefer to sell the business
         as a going concern, that alternative might prove to be an unworkable
         option. If that alternative is not feasible, the Company will be
         compelled to liquidate its assets.

         The Company's June 28, 2002 motion requests that the Bankruptcy Court
         schedule a hearing to accept offers to sell the Company or its assets
         during the week of July 22, 2002. The goal of the Company's lenders
         under the Debtor In Possession Loan and Security Agreement is to raise
         sufficient cash to repay all obligations outstanding under

                                      -5-
<PAGE>

               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)
                         For Quarter Ended May 4, 2002



         the DIP Facility by August 1, 2002. The DIP Facility lenders have
         proposed to consent to the sale of the Company's inventories and
         receivables and eliminate the unused line of credit fee and the
         covenant giving rise to the defaults described above (including a
         waiver of previous defaults) in exchange for (1) a decrease in the
         maximum borrowings under the facility from $100 million to $6 million,
         minus the net cash proceeds from sales of real estate, (2) changing the
         maturity date of the facility from January 30, 2003 to the earlier of
         October 30, 2002 or the date maximum borrowings are reduced to zero,
         and (3) payment of a $1 million early termination fee and a $500,000
         structuring fee. The proposal is still being negotiated and it is not
         certain whether it will be approved by the Company, the bankruptcy
         court and the Company's unsecured creditors, and, if approved, what the
         final terms of the DIP Facility will be.

         The Company currently expects that its outstanding common shares will
         be cancelled and that holders of its common shares will receive no
         distributions in its bankruptcy proceedings. The Company also currently
         expects that the proceeds of any sales resulting from the bids will not
         be sufficient to repay unsecured creditors in full.

         On July 12, 2002, the Company announced layoffs of 230 employees at its
         Jackson, Michigan and Winter Park, Florida service centers, primarily
         buyers and employees engaged in the allocation and distribution of
         merchandise to the Company's stores. These employees will continue to
         receive their salaries through the later of the date provided for in
         the employees Severance Pay and Retention Bonus Plan or August 30,
         2002.

   (2)   GAIN ON SALE OF PROPERTY

         On January 30, 2002, the Bankruptcy Court entered an order approving
         the Company's plan to close the Toledo, Ohio store along with four
         other under-performing stores. The Toledo store was closed in March
         2002. Effective April 1, 2002, the store was sold and the Company
         recorded a pre-tax gain of $9,385,000.

   (3)   EARNINGS PER SHARE

         Basic earnings per common share are computed by dividing reported
         earnings available to common shareholders by weighted average common
         shares outstanding. Diluted earnings per common share give effect to
         dilutive potential common shares. Earnings per common share are
         calculated as follows:

<TABLE>
<CAPTION>
                                                                                  Thirteen Weeks Ended
                                                                                 -------------------------
                                                                                  May 4,           May 5,
                 (in thousands, except per share data)                             2002             2001
<S>                                                                               <C>              <C>
                 -----------------------------------------------------------------------------------------

                 Earnings available to common shareholders                        $1,283           $ 1,208
                                                                                  ======           =======
                 Weighted average common shares outstanding                        5,788             5,788
                 Dilutive stock options                                                -                 2
                                                                                  ------           -------
                 Shares used to calculate diluted
                      earnings per common share                                    5,788             5,790
                                                                                  ======           =======
                 Earnings per common share:
                      Basic                                                       $ 0.22           $  0.21
                                                                                  ======           =======
                      Diluted                                                     $ 0.22           $  0.21
                                                                                  ======           =======
</TABLE>












                                      -6-
<PAGE>
               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)
                         For Quarter Ended May 4, 2002

   (4)   CUSTOMER CREDIT AND RECEIVABLES

         Receivables from customers were as follows:

<TABLE>
<CAPTION>

                                                                              May 4,     February 2,
                 (in thousands)                                                2002         2002
                 -----------------------------------------------------------------------------------
<S>                                                                         <C>         <C>
                 Receivables from customers                                 $ 38,608    $  45,876
                 Less reserve for doubtful accounts                             (723)        (798)
                                                                            --------    ---------

                                                                            $ 37,885    $  45,078
                                                                            ========    =========
</TABLE>

   (5)   MERCHANDISE INVENTORIES

         Merchandise inventories were as follows:

<TABLE>
<CAPTION>
                                                                              May 4,     February 2,
                 (in thousands)                                                2002         2002
                 -----------------------------------------------------------------------------------
<S>                                                                         <C>         <C>
                 Inventories at first-in, first out
                     (FIFO) cost                                            $ 70,303    $  60,265
                 Less LIFO reserves                                          (14,487)     (14,487)
                                                                            --------    ---------

                                                                            $ 55,816    $  45,778
                                                                            ========    =========
</TABLE>

   (6)   PROPERTY AND EQUIPMENT

         Property and equipment are set forth below:

<TABLE>
<CAPTION>
                                                                              May 4,     February 2,
                 (in thousands)                                                2002         2002
                 -----------------------------------------------------------------------------------
<S>                                                                         <C>         <C>
                 Property and equipment                                     $204,349    $ 209,265
                 Less accumulated depreciation
                     and amortization                                        115,551      115,532
                                                                            --------    ---------

                                                                            $ 88,798    $  93,733
                                                                            ========    =========
</TABLE>

   (7)   SUPPLEMENTARY CASH FLOW INFORMATION

         The Company considers all short-term investments with maturity at date
         of purchase of three months or less to be cash equivalents.

         Interest paid (net of interest capitalized) totaled $1,582,000 and
         $2,087,000 in the thirteen week periods ended May 4, 2002 and May 5,
         2001, respectively. The Company received income tax refunds of
         $2,000,000 in the thirteen week period ended May 5, 2001.



                                      -7-

<PAGE>


               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)
                         For Quarter Ended May 4, 2002





   (8)   INCOME TAXES

         The Company's estimated annual effective income tax rate for 2001 was
         applied to the earnings before income taxes for the thirteen-weeks
         ended May 5, 2001 to compute the provision for income tax.

         In assessing the realizability of deferred tax assets, management
         considers whether it is more likely than not that some portion or all
         of the deferred taxes will be realized. A valuation allowance for its
         deferred taxes was recorded during 2001 and no provision for income
         taxes has been recorded for the first quarter of 2002 as the valuation
         allowance has been adjusted for the amount of deferred taxes that would
         have been recorded on the fiscal 2002 earnings. Management will
         continue to assess the future realization of its deferred tax assets
         and accordingly, the recorded allowance will be subject to further
         adjustment in future periods.

   (9)   LIABILITIES SUBJECT TO COMPROMISE

         The Company filed a petition on January 15, 2002 with the United States
         Bankruptcy Court seeking relief to reorganize under Chapter 11. As a
         result, the payment of pre-petition liabilities has been stayed with
         minor exceptions for ongoing payroll, employee benefits and normal
         store operations, such as distribution charges, customer policies and
         goods delivered after January 15, 2002, and except for liabilities
         under the Company's Amended and Restated Loan and Security Agreement
         dated as of July 18, 2001 which were refinanced under the Company's
         Debtor in Possession Loan and Security Agreement, dated as of January
         30, 2002, as amended. These liabilities as of January 15, 2002 are
         recorded on the Consolidated Balance Sheets as liabilities subject to
         compromise. Amounts due under the Debtor In Possession Loan and
         Security Agreement have been classified as a current liability as a
         result of their January 30, 2003 maturity date and as a result of
         defaults under those loans.

         The Company was in default under a number of covenants relating to its
         long-term debt as of May 4, 2002. In normal circumstances, such
         unwaived defaults would have resulted in the classification of such
         debt as currently due. However, because of the stay of such debt as a
         result of the Company's Chapter 11 filing and the adoption of the AICPA
         Statement of Position 90-7, which has resulted in the classification of
         such debt as liabilities subject to compromise, the Company believes
         that such debt is a current liability, subject only to the outcome of
         the Chapter 11 proceedings. In accordance with the automatic stay
         provisions of the Chapter 11 proceedings, the Company has discontinued
         accruing interest on its unsecured and under-secured indebtedness,
         covering approximately $24,376,000 in principal amount of its
         liabilities subject to compromise.

                                      -8-

<PAGE>

               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)
                         For Quarter Ended May 4, 2002



         Some of the long-term debt subject to compromise is secured by specific
         real estate. As of May 4, 2002, the secured portion of the liabilities
         subject to compromise covered approximately $38,415,000 in principal
         amount of its liabilities subject to compromise. The remainder of this
         indebtedness is unsecured.





























                                      -9-
<PAGE>

               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES
                         PART I: FINANCIAL INFORMATION
                          For Quarter Ended May 4, 2002



ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS.

The registrant, Jacobson Stores Inc., a Michigan corporation and successor to a
business founded in 1868, operates specialty stores catering to discerning
customers with preferences for distinctive, quality merchandise. The Company is
committed to highly responsive service, distinctive merchandise of high quality
at a fair price, and a visually appealing and immaculate setting. Each store
features distinctive apparel and accessories for women, men and children, as
well as decorative accents for the home.

The Company owns a substantial portion of the real property used in its
business, primarily through its consolidated, wholly-owned real estate
subsidiary, Jacobson Stores Realty Company ("Jacobson Realty"). The Company also
has a consolidated, wholly-owned finance subsidiary, Jacobson Credit Corp.
("Jacobson Credit"). As used in this report, the terms "registrant", "Company"
and "Jacobson's" refer to Jacobson Stores Inc. and its subsidiaries unless the
context indicates otherwise.

The Company has stores in eighteen cities in Michigan, Indiana, Kansas, Kentucky
and Florida. The principal distribution functions are performed at service
centers in Jackson, Michigan and Winter Park, Florida. Functions common to all
stores, such as management coordination, merchandising, sales promotion, data
processing and accounting, are centralized at the corporate headquarters in
Jackson, Michigan.

a.    OPERATING RESULTS: THIRTEEN WEEKS ENDED MAY 4, 2002 COMPARED TO THIRTEEN
      WEEKS ENDED May 5, 2001

      Sales for the quarter ended May 4, 2002, totaled $78,917,000, a decrease
      of 30.4% from 2001. Comparable store sales decreased 17.2%. Sales declined
      in part because the Company closed six stores since the first quarter of
      2001. Comparable store sales were adversely affected by the economic
      slowdown in the retail department store industry, exacerbated by the
      tragic events of September 11, 2001. These factors and the Company's
      Chapter 11 filing resulted in a decrease in customer traffic. The Company
      expects the difficult retail environment to continue in the second quarter
      and its sales to decline compared to last year because of store closings
      and lower traffic in its remaining stores.

      The Company's gross profit percentage decreased to 32.3% for the thirteen
      weeks this year from 35.5% in 2001, reflecting principally higher
      markdowns and the effect of fixed buying and tenancy costs on lower sales.

      Selling, general and administrative expenses, expressed as a percentage of
      net sales, increased to 36.9 % in the quarter from 31.7% one year ago. The
      increase is due primarily to the effect of fixed administrative expenses
      on lower sales. Selling, general and administrative expenses also include
      costs of $1,125,000 in 2002 associated with a retention and bonus plan
      implemented with Bankruptcy Court approval to retain key associates during


                                      -10-
<PAGE>


               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES
                         PART I: FINANCIAL INFORMATION
                          For Quarter Ended May 4, 2002


      the reorganization. The dollar decrease in expenses for the current
      quarter primarily reflects the impact of closing six stores since the
      first quarter of 2001.

      Interest expense, expressed as a percentage of net sales, totaled 2.1% for
      the current quarter compared to 2.2% for the previous year. The decrease
      is due to a decrease in average borrowings and a decrease in interest
      rates paid on the borrowings during the first quarter of fiscal 2002.

      The Company sold the real estate relating to its former Toledo, Ohio store
      effective April 1, 2002 and recognized a pre-tax gain of $9,385,000 on the
      sale.

      During the first quarter of 2002, the Company incurred $2,805,000 of
      reorganization costs, primarily bankruptcy-related professional fees.

      Because of the Company's losses in 2001 and the resulting reserves for
      deferred tax assets, the Company did not recognize a provision for income
      taxes on its 2002 earnings, but, instead, adjusted its reserve for
      deferred taxes. 2002 net earnings for the thirteen weeks totaled
      $1,283,000, or 22 cents per common share, compared to $1,208,000, or 21
      cents per common share, last year. As a percent of sales, net earnings
      were 1.6% in 2001 compared to 1.1% in 2001.

b.    LIQUIDITY AND CAPITAL RESOURCES

      At May 4, 2002, the Company's current ratio was 1.31 to 1 (excluding
      liabilities subject to compromise) and working capital totaled $26,459,000
      (excluding liabilities subject to compromise), including $4,098,000 of
      cash and cash equivalents. At February 2, 2002 the current ratio was 1.21
      to 1 (excluding liabilities subject to compromise) and working capital
      totaled $19,145,000 (excluding liabilities subject to compromise),
      including $813,000 of cash and cash equivalents.

      The Company uses cash flows from operations, temporary relief from
      pre-petition liabilities and any available revolving credit line
      borrowings to fund its seasonal working capital needs, fund its
      operations, fund its capital expenditures, pay professional and
      administrative fees in connection with its reorganization and fund debt
      service (including adequate protection claims).

      To support its present and planned working capital requirements, the
      Company has a $100,000,000 secured revolving credit facility under the
      Debtor In Possession Loan and Security Agreement with commercial lenders
      that matures on January 30, 2003 or the date of substantial consummation
      of a plan of reorganization in the Company's bankruptcy proceedings, if
      earlier, although, as described below, borrowings under that facility are
      currently at the discretion of the lenders. The DIP revolving credit
      facility provides for borrowings of up to $100,000,000, subject to a
      borrowing base limitation and availability reserves. The facility also
      permits up to $5,000,000 in letters of credit, which decrease the


                                      -11-
<PAGE>
               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES
                         PART I: FINANCIAL INFORMATION
                         For Quarter Ended May 4, 2002


      amount available for borrowings. As of May 4, 2002, the Company had
      outstanding borrowings of $63,887,000 at an interest rate of 6.50% and
      outstanding letters of credit under this facility totaling $236,000 and
      had $18,649,000 of borrowing availability under the borrowing base
      calculated as of that date. For the quarter ended May 4, 2002, the daily
      weighted average interest rate on borrowings under the Debtor in
      Possession Loan and Security Agreement was 6.50%.

      As of April 6, 2002, the Company was not in compliance with a covenant
      under its Debtor In Possession Loan and Security Agreement concerning
      limits on vendor payments. The Company obtained a waiver of this covenant
      violation for the period ended April 6, 2002. As of May 4, 2002, the
      Company again was not in compliance with the limits on vendor payments
      under its Debtor In Possession Loan and Security Agreement, and as of June
      2, 2002, the Company was not in compliance with a covenant under its
      Debtor In Possession Loan and Security Agreement concerning minimum sales.
      The lenders have not waived the May 4, 2002 or June 2, 2002 violations. As
      a result, the lenders have no obligation to make any revolving credit
      loans or issue, extend or renew letters of credit under the DIP facility,
      although they may do so in their sole and absolute discretion, and the
      loans under the DIP facility bear interest at the default rate of interest
      (two percent higher than the previous rate) beginning June 1, 2002. Also,
      the lenders may, among other things, require immediate payment of this
      indebtedness and foreclose on, and sell, the Company's assets if the
      Company does not repay the indebtedness in full.

      For several months, the Company and its financial advisors have been
      exploring the Company's strategic alternatives, but have not received a
      proposal to purchase the business as a going concern. As a result of the
      defaults described above, the Company, with the approval of the lenders
      under the Debtor In Possession Loan and Security Agreement, filed a motion
      on June 28, 2002, with the Bankruptcy Court that, if approved, would
      establish a procedure and schedule for the Company to solicit and accept
      bids to either sell the business as a going concern or to liquidate it.
      While the Company would prefer to sell the business as a going concern,
      that alternative might prove to be an unworkable option. If that
      alternative is not feasible, the Company will be compelled to liquidate
      its assets.

      The Company's June 28, 2002 motion requests that the Bankruptcy Court
      schedule a hearing to accept offers to sell the Company or its assets
      during the week of July 22, 2002. The goal of the Company's lenders under
      the Debtor In Possession Loan and Security Agreement is to raise
      sufficient cash to repay all obligations outstanding under the DIP
      Facility by August 1, 2002. The DIP Facility lenders have proposed to
      consent to the sale of the Company's inventories and receivables and
      eliminate the unused line of credit fee and the covenant giving rise to
      the defaults described above (including a waiver of previous defaults) in
      exchange for (1) a decrease in the maximum borrowings under the facility
      from $100 million to $6 million, minus the net cash proceeds from sales of
      real estate, (2) changing the maturity date of the facility from January
      30, 2003 to the earlier of October 30, 2002 or the date maximum borrowings
      are reduced to zero, and (3) payment of a $1 million early termination fee
      and a $500,000 structuring fee. The proposal is still being negotiated and
      it is not certain whether it will be approved by the Company, the
      bankruptcy court and the Company's unsecured creditors, and, if approved,
      what the final terms of the DIP Facility will be.

      The Company currently expects that its outstanding common shares will be
      cancelled and that holders of its common shares will receive no
      distributions in its bankruptcy proceedings. The Company also currently
      expects that the proceeds of any sales resulting from the bids will not be
      sufficient to repay unsecured creditors in full.

      On July 12, 2002, the Company announced layoffs of 230 employees at its
      Jackson, Michigan and Winter Park, Florida service centers, primarily
      buyers and employees engaged in the allocation and distribution of
      merchandise to the Company's stores. These employees will continue to
      receive their salaries through the later of the date provided for in the
      employees Severance Pay and Retention Bonus Plan or August 30, 2002.


                                      -12-

<PAGE>
               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES
                         PART I: FINANCIAL INFORMATION
                         For Quarter Ended May 4, 2002


      As of May 4, 2002 the Company was also not in compliance with financial
      covenants in, and is currently in default under, six mortgage loans with
      four lenders covering $30,473,204 in principal amount of debt. In
      addition, the Company elected not to make $226,000 in sinking fund
      payments and $823,000 in interest payments that were due on December 15,
      2001 under its 6-3/4% Convertible Subordinated Debentures and is in
      default under the related Indenture. In addition, the Company's filing of
      a voluntary petition for relief under Chapter 11 of the United States
      Bankruptcy Code is a default under agreements covering an additional
      $1,541,785 in principal amount of debt.

      Under the Bankruptcy Code, however, the payment of scheduled principal
      payments, accrued interest, accounts payable and other liabilities that
      were incurred before January 15, 2002 (which does not include the Debtor
      In Possession Loan and Security Agreement) will be, in most cases,
      deferred until a plan of reorganization is confirmed by the Bankruptcy
      Court or the Company's business is sold or its assets are liquidated.
      Until that time, the only payments of pre-petition debt made by the
      Company will be those approved by the Bankruptcy Court or required by the
      Bankruptcy Code. As a result, the Company's indebtedness as of January 15,
      2002, other than the amounts due under the revolving credit facility, is
      subject to treatment and payment pursuant to the Bankruptcy Code and has
      been reclassified on the Company's balance sheet as liabilities subject to
      compromise. Loans under the Company's Debtor In Possession Loan and
      Security Agreement have been classified as a current liability, because of
      the January 30, 2003 maturity date of those loans and because of defaults
      under those loans.

      The Chapter 11 cases might also result in additional claims on the
      Company's cash. In addition to the store closings for which a reserve was
      recorded in fiscal 2001, under the Bankruptcy Code, the Company may elect
      to assume or reject additional unexpired leases and executory contracts,
      including real estate leases, employment contracts, personal property
      leases and service contracts, subject to Bankruptcy Court approval. The
      Company cannot presently determine or reasonably estimate the ultimate
      liability that may result from any additional assumptions or rejections,
      which will depend on the bids it receives for the Company or its assets.

      Additional claims or liabilities subject to compromise may arise after
      January 15, 2002 resulting from the determination by the Bankruptcy Court
      or agreed to by the parties in interest of allowed claims, including
      contingent claims and other disputed amounts. Actions by creditors holding
      claims secured against the Company's assets are also stayed, although the
      holders of such claims have the right to request the Bankruptcy Court for
      relief from the stay. The Company is currently reviewing the filed claims
      and has no estimate of the amount of disputed claims.

      As a result of the proposed sale of the Company's business or assets and
      its Chapter 11 proceedings, the rights of the Company's creditors may be
      substantially altered. Creditors may realize less than the full face
      amount of their claims. It is impossible at this time to predict the
      actual recovery, if any, the creditors might ultimately realize, any other
      outcome


                                      -13-
<PAGE>
               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES
                         PART I: FINANCIAL INFORMATION
                         For Quarter Ended May 4, 2002


      of the Chapter 11 proceedings or their effect on the Company's business,
      except that (1) the Company currently expects that its outstanding common
      shares will be cancelled and holders of its common shares will receive no
      distributions in its bankruptcy proceedings, (2) the Company currently
      expects that the proceeds of any sales resulting from the bids will not be
      sufficient to repay unsecured creditors in full, and (3) the Company's
      June 28, 2002 motion requests that the Bankruptcy Court schedule a hearing
      to accept offers to sell the Company or its assets during the week of July
      22, 2002. The Company expects that substantially all of its cash will be
      used to pay obligations under its Debtor In Possession Loans and Security
      Agreement, other secured claims, administrative claims and liabilities
      subject to compromise and other liabilities.

      Although the Company is authorized to operate its business as a
      debtor-in-possession, it may not engage in transactions outside the
      ordinary course of business without first obtaining Bankruptcy Court
      approval after notice and hearing.

      The Company's consolidated financial statements included in this report
      have been prepared on a going-concern basis assuming the realization of
      assets and liquidation of post-petition liabilities in the ordinary course
      of business, which is not likely. See Note (1) of the Notes to
      Consolidated Financial Statements included in Item 1 of this report.

c.    CASH FLOWS

      Cash and cash equivalents increased $3,285,000 in the thirteen weeks ended
      May 4, 2002 compared to a decrease of $331,000 in the thirteen weeks ended
      May 5, 2001. Cash flows are impacted by operating, investing and financing
      activities. In the thirteen weeks this year, cash provided by operating
      activities totaled $1,504,000 compared to $4,699,000 used in 2001.

      The increase in cash flows from operating activities in the first quarter
      of 2002 compared to the same period in 2001 resulted primarily from (1) an
      increase in accounts payable and accrued expenses in 2002, compared to a
      decrease last year, primarily as a result of increased inventories this
      year, partially offset by lower trade credit and more vendors shipping
      merchandise on a cash on delivery or cash in advance basis, and (2) a
      decrease in receivables in 2002, compared to an increase in 2001,
      primarily as a result of the impact of store closings in 2002 and lower
      sales. These increases in operating cash flow were partially offset by (1)
      the gain on sale of the Toledo, Ohio property, and (2) the planned
      increase in merchandise inventory during the first quarter to replenish
      the Company's merchandise offerings for the spring season. See "Liquidity
      and Capital Resources" for a description of (1) defaults under the Debtor
      In Possession Loans and Security Agreement and the Company's plan to sell
      its business or assets, and (2) the effect of the Company's Chapter 11
      filing on its obligation to pay liabilities subject to compromise [and on
      its trade credit]. Net cash outflows in the 2001-quarter resulted
      primarily from increases in merchandise inventory and paydown of accounts
      payable and accrued expenses, partially offset by



                                      -14-
<PAGE>
               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES
                         PART I: FINANCIAL INFORMATION
                         For Quarter Ended May 4, 2002


      earnings before non-cash charges and collection of refundable income taxes
      due to losses in fiscal 2000.

      Investing activities provided cash of $12,394,000 in the thirteen weeks
      this year compared to $2,455,000 used in 2001 primarily due to the
      proceeds from the sale of the Toledo, Ohio store. Capital expenditures
      totaled $2,000 in the first thirteen weeks of 2002, compared to $1,781,000
      in the comparable 2001 period. The Company does not expect to incur
      significant capital expenditures in fiscal 2002.

      Financing activities used cash of $10,613,000 in the thirteen weeks this
      year compared to $6,823,000 provided last year. In the thirteen weeks in
      2002, the Company repaid $10,605,000 under its revolving credit facility
      and used $8,000 to service current maturities of long-term debt. In 2001,
      the Company borrowed $7,756,000 under its revolving credit facility, used
      $427,000 to purchase 6 3/4% Convertible Debentures and used $506,000 to
      service current maturities of long-term debt.

      The Company expects that its near term cash requirements will continue to
      be provided by ongoing operations, any available borrowings under its
      Debtor In Possession Revolving Credit Agreement, the sale of closed
      properties owned by the Company and its temporary relief from pre-petition
      liabilities, although the Company is currently in default under its Debtor
      In Possession Loan and Security Agreement and future loans under that
      facility are in the discretion of the lenders. See "Liquidity and Capital
      Resources."

d.    CORPORATE DEVELOPMENT

      The Company reviews the performance of its less profitable stores from
      time to time to determine whether it would be in the Company's best
      interest to close any of these stores. Store closings could have a
      significant impact on the Company's sales, expenses and capital
      requirements and would likely entail additional significant one-time
      charges to effect the closing and to recognize any impairment of assets
      resulting from the closing decision.

      In December 2000, the Company signed a lease for an 80,000 square foot
      store as part of a new development, Legacy Place, an upscale specialty
      center to be constructed in Palm Beach Gardens, Florida, targeted to open
      in the fall of 2002 and to replace the Company's nearby North Palm Beach,
      Florida location. In December 2001, the developer withdrew its plans for
      the development.

      Effective May 15, 2002, Mr. Mills retired from the Board of Directors of
      the Company.

      In January 2002, the Bankruptcy Court entered an order approving the
      Company's plan to close five under-performing stores located in Columbus
      and Toledo, Ohio and Clearwater, Osprey and Tampa, Florida. In conjunction
      with the store closings, the Company entered into an agreement with a
      third party to liquidate the inventory and fixtures in the five stores.
      These stores were closed in March 2002. As permitted under the Bankruptcy
      Code, the


                                      -15-
<PAGE>
               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES
                         PART I: FINANCIAL INFORMATION
                         For Quarter Ended May 4, 2002


      Company has rejected its unexpired leases relating to the Clearwater,
      Osprey and Tampa stores.

      On April 1, 2002, the Company completed the sale of its Toledo, Ohio store
      at a pre-tax gain of $9,385,000. The Company continues to pursue
      opportunities for the sale of its Columbus, Ohio store.

      See "Liquidity and Capital Resources" for a description of a motion filed
      in the Company's bankruptcy proceedings with respect to the proposed sale
      of the Company's business as a going concern or liquidation.

      Each of the above statements regarding future revenues, expenses or
      business plans (including statements regarding the sufficiency of the
      Company's capital resources to fund its obligations), as well as other
      statements made by the Company, may be a "forward looking statement"
      within the meaning of the Securities Exchange Act of 1934 that reflect the
      Company's current views with respect to current events and financial
      performance. Such statements are subject to important factors, risks and
      uncertainties that could cause actual results to differ materially from
      those expressed or implied in the forward-looking statement, including,
      but not limited to, the ability of the Company to continue as a going
      concern during the bidding and sale process, the Company's ability to
      obtain court approval with respect to motions in the Chapter 11
      proceedings prosecuted by it from time to time (including the motion
      described in "Liquidity and Capital Resources"), the need to raise
      additional capital to repay accelerated indebtedness, the cooperation and
      forbearance of the DIP lenders and the Company's other creditors during
      the bidding and sale process, the need to obtain acceptable bids to
      purchase the Company as a going concern or for its separate assets, the
      support of the Company's trade creditors and factors, the risks inherent
      in the level of the Company's long-term debt compared to its equity, the
      risks associated with third parties seeking and obtaining court approval
      for the appointment of a Chapter 11 trustee or to convert the cases to
      Chapter 7 cases, the ability of the Company to maintain contracts that are
      critical to its operations, the potential adverse impact of the Chapter 11
      cases and the defaults under the Debtor In Possession Loan and Security
      Agreement on the Company's liquidity and results of operations, the
      ability of the Company to retain or motivate key executives and
      associates, the risk of unanticipated operating expenses, customer demand,
      the Company's ability to attract and retain customers, general trends in
      retail clothing apparel purchasing, related inventory risks, fluctuations
      in store appeal and the factors set forth in this Management's Discussion
      and Analysis of Financial Condition and Results of Operations. All of
      these risks can also affect the value of the Company's various
      pre-petition liabilities and equity securities.



                                      -16-
<PAGE>
               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES
                         PART I: FINANCIAL INFORMATION
                         For Quarter Ended May 4, 2002


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company's debt obligations that are sensitive to changes in interest rates,
scheduled principal maturities, weighted average interest rates associated with
those maturities and market value of debt have not changed materially from
fiscal year-end, except as described in Note (1) of Notes to Consolidated
Financial Statements included in this report.









































                                      -17-
<PAGE>
               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES
                           PART II: OTHER INFORMATION
                         For Quarter Ended May 4, 2002


ITEM 1.        LEGAL PROCEEDINGS

For a description of developments in the Company's Chapter 11 cases, see Note
(1) of Notes to Consolidated Financial Statements included in Part I of this
report.

ITEM 3.        DEFAULTS UPON SENIOR SECURITIES

For a description of defaults under the Company's Debtor In Possession Loan and
Security Agreement, see "Management's Discussion and Analysis of Financial
Condition and Results of Operations -- Liquidity and Capital Resources" in Part
I of this report.

ITEM 6.        EXHIBITS AND REPORTS ON FORM 8-K

    (a)        Exhibits

   10.1        Waiver Letter, dated as of May 22, 2002, among Jacobson Stores
               Inc., Jacobson Credit Corp, Jacobson Stores Realty Company, Fleet
               Retail Finance Inc. and the lenders party to the Debtor In
               Possession Loan and Security Agreement.

   10.2        Default Letter, dated as of July 1, 2002, from Fleet Retail
               Finance, Inc., as administrative agent, to Jacobson Stores Inc.

    (b)        Reports on Form 8-K

               The Company filed a report on Form 8-K on May 30, 2002 reporting
               in Item 4 that it had dismissed Arthur Andersen LLP as its
               independent accountants. No financial statements were filed with
               this report.


All exhibits except as set forth above have been omitted as not applicable or
not required.












                                      -18-
<PAGE>
               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                                   JACOBSON STORES INC.
                                          --------------------------------------
                                                       (Registrant)



Date:        July 15      , 2002      BY: /s/   Carol Williams
       -------------------                --------------------------------------
                                          CAROL WILLIAMS
                                          President and Chief Executive Officer
                                          (Duly Authorized Officer)


Date:        July 15      , 2002      BY:  /s/   Paul W. Gilbert
       -------------------                --------------------------------------
                                          PAUL W. GILBERT
                                          Vice Chairman of the Board
                                          (Principal Financial Officer)





                                      -19-
<PAGE>
               JACOBSON STORES INC. AND CONSOLIDATED SUBSIDIARIES


                                INDEX OF EXHIBITS


      10.1     Waiver Letter, dated as of May 22, 2002, among Jacobson Stores
               Inc., Jacobson Credit Corp, Jacobson Stores Realty Company, Fleet
               Retail Finance Inc. and the lenders party to the Debtor In
               Possession Loan and Security Agreement.

      10.2     Default Letter, dated as of July 1, 2002, from Fleet Retail
               Finance, Inc., as administrative agent, to Jacobson Stores Inc.


      All exhibits except as set forth above have been omitted as not applicable
      or not required.