Fabric and Crafts Retailer Joann Files for Bankruptcy
Joann, a renowned retailer of fabrics and crafts, based in Ohio, has filed for bankruptcy protection.
Despite the bankruptcy filing, Joann intends to continue operating its stores and website while undergoing refinancing.
The company's plan involves transitioning into private ownership, possibly within the coming month.
Established in 1943, Joann had previously been privatized in 2011 when equity firm Leonard Green & Partners acquired it for approximately $1.6 billion.
Ten years later, Joann went public through an initial public offering at $12 per share, while remaining mostly owned by Leonard Green & Partners.
According to the Chapter 11 petition filed on Monday, Joann disclosed debts exceeding $2.44 billion against assets valued at around $2.26 billion, based on data from October 2023.
Joann has secured commitments for approximately $132 million in new financing and anticipates reducing its debt load by approximately $505 million.
The company did not elaborate on the reasons behind its increased debt, but it is noted that consumer spending on non-essential items has declined amid inflation.
Joann reassured that its network of approximately 850 stores across the United States will remain unaffected, with no immediate impact on customers or employees.
Fill in some textChris DiTullio, Joann's chief customer officer, expressed confidence in the company's ability to continue serving creative enthusiasts and thanked customers and team members for their support over the past 80 years.