OAN’s Abril Elfi
5:49 PM – Monday, March 18, 2024
Fabrics and crafts retail store Joann has filed for bankruptcy protection after 81 years in business.
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The Hudson, Ohio-based business, with locations throughout the U.S., said in a statement on Monday that it anticipates coming out of bankruptcy as soon as the end of the following month.
“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,” Chris DiTullio, chief customer officer and co-lead of the interim office of the CEO, said in the release.
The company stated that after this move, some lenders and industry participants will probably acquire Joann privately, and as a result, its shares will no longer be offered for sale on stock exchanges.
The more than 800 Joann’s locations, as well as its website, will reportedly keep operating normally while it files for bankruptcy.
The company pointed to an agreement that it had made with the majority of its shareholders for financial support when it stated that vendors, landlords, and other trade creditors should also not experience any pay disruptions.
The transaction support agreement, according to Scott Sekella, Joann’s Chief Financial Officer and co-leader of the CEO’s interim office, represents a “significant step forward” in addressing the company’s capital structure needs. The retailer is dedicated to continuing business as usual in order to “best serve our millions of customers nationwide,” he added.
“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,” she stated.
Along with the filing, Joann announced that it had secured an additional $132 million in funding and anticipated a $505 million reduction in the funded debt shown on its balance sheet.
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