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Joann Inc. Files for Chapter 11 Bankruptcy, Aims for Swift Private Transition

The craft retailer plans to reduce its debt by $505 million and continue normal operations of its 829 stores and website.

A shopper enters a Jo-Ann Store LLC location in Peoria, Illinois, U.S., on Wednesday, Sept. 19, 2018. Joann, the crafting and arts supplies chain which dropped Fabrics from its name earlier this year, tried to make the case that many small businesses shop at its stores for supplies to make locally produced goods, leading it to dub Trump's tariffs a "made-in-America tax." Photographer: Daniel Acker/Bloomberg via Getty Images
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Overview

  • Joann Inc., a prominent fabric and craft retailer, has filed for Chapter 11 bankruptcy protection with plans to emerge as a private company by April 2024.
  • The company anticipates reducing its funded debt by approximately $505 million through a restructuring deal that includes $132 million in new financing.
  • Despite the bankruptcy filing, Joann's 829 stores across 49 states and its website will continue operating as normal.
  • Joann cites a pullback in consumer spending on non-essential items and increased competition from online retailers as key challenges leading to the bankruptcy.
  • The restructuring aims to provide Joann with the financial resources and flexibility necessary to continue offering best-in-class product assortments and enhance customer experience.