Crafts Retailer Joann Files For Chapter 11 Bankruptcy

Fabric and crafts retailer Joann has filed for Chapter 11 bankruptcy protection, as consumers continue to cut back on discretionary spending and some pandemic-era hobbies, according to Wyatte Grantham-Philips' report for the Associated Press (AP).

Joann’s more than 800 stores and its website will continue to operate normally during the bankruptcy process. I Photo: Mike Mozart Flickr

The Hudson, Ohio-based company stated that it expected to emerge from bankruptcy as early as the end of next month.

Following this process, Joann will likely become privately owned by certain lenders and industry parties, meaning its shares would no longer be publicly traded on stock exchanges.

Joann listed more than $2.44 billion in total debts and about $2.26 billion in total assets in Monday’s Chapter 11 petition, filed in Delaware, citing numbers from October 2023.

Joann’s more than 800 stores and its website will continue to operate normally during the bankruptcy process.

Vendors, landlords, and other trade creditors should also not see any pay disruptions, the company said, pointing to a deal it had struck with most of its shareholders for financial support.

In addition to Monday’s filing in US Bankruptcy Court, Joann said it had received about $132 million in new financing and expected to reduce its balance sheet’s funded debt by about $505 million.

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