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.
- 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.