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Popular fabric and craft retailer Joann filed for Chapter 11 bankruptcy protection on Monday (March 18). The Ohio-based retailer has been in business for 81 years and has grown to over 800 stores across the country.
The retailer struck a restructuring deal with lenders that provided $132 million in new financing and reduced the company's debt by about $505 million.
"This agreement is a significant step forward in addressing JOANN's capital structure needs, and it will provide us with the financial resources and flexibility necessary to continue to deliver best-in-class product assortments and enhance the customer experience wherever they are shopping with us," Chris DiTullio, Chief Customer Officer and co-lead of the Interim Office of the CEO said in a press release.
The company said it plans to keep its stores running while it goes through the bankruptcy process.
"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," DiTullio added.
As part of the filing, Joann Inc. will be delisted from the Nasdaq as it becomes a private company. The company hopes to wrap up the bankruptcy proceedings by the end of April.