Joann Files For Bankruptcy

Joann announced on Monday that the company has filed for Chapter 11 bankruptcy.

The sewing, fabrics, and arts and crafts material retailer has 829 store locations across 49 states, including over 50 store locations in Florida.

The 81-year-old company said that its stores and JOANN.com remain open and continue to operate as usual.

Joann also assured that vendors, landlords and other general unsecured creditors remain unimpaired.

Joann stated that the company had secured $132 million in new financing and related financial accommodations and expects to reduce funded debt on its balance sheet by approximately $505 million. 

“Over the past several months, JOANN has made meaningful business improvements through the execution of our Focus, Simplify and Grow cost reduction initiative,” said Chris DiTullio, Chief Customer Officer and co-lead of the Interim Office of the CEO. 

“We are excited by our progress on both top and bottom-line initiatives in the past year and are confident the steps we are taking will allow JOANN to drive long-term growth. We appreciate the support from our financial and industry stakeholders in this agreement, and their confidence in our ability to continue driving positive business change. There is no other retailer with the same ability to serve sewists, quilters, crocheters, crafters and other creative enthusiasts as we have for the past 80 years, and we take great pride in seeing the passion and engagement of our millions of customers and our Team Members.”