After 81 years in business, Joann Inc., the Ohio-based fabric and craft retailer, has filed for Chapter 11 bankruptcy protection. The company made this announcement on Monday, indicating the possibility of transitioning to private ownership as early as next month.
Despite the bankruptcy filing, Joann Fabrics and Crafts stores and its website will continue to operate normally, as stated in a press release. Chris DiTullio, chief customer officer and co-lead of the interim office of the CEO, emphasized the company’s unique ability to serve creative enthusiasts, expressing pride in the loyalty and engagement of millions of customers and team members over the past eight decades.
Established in 1943, Joann Inc. currently operates 829 store locations across 49 states.
Scott Sekella, Joann’s chief financial officer and co-lead of the interim office of the CEO, hailed the bankruptcy agreement as a significant stride in addressing the company’s capital structure needs. He highlighted the importance of the financial resources and flexibility gained through this agreement to maintain top-tier product assortments and enhance the customer experience across all shopping platforms.
Joann Inc. transitioned from private to public ownership in 2011 before returning to public status a decade later with an initial offering at $12 per share. However, the stock’s value plummeted to 25 cents per share upon opening on Monday.
Despite the financial challenges, Joann Inc. has secured approximately $132 million in commitments for new financing. The company also anticipates reducing its funded debt by approximately $505 million, according to the press release.
