(WJET/WFXP) — Crafts retailer Joanne filed for Chapter 11 bankruptcy protection early Monday morning. With more than 800 stores nationwide, the company is best known for selling craft supplies, home decor, and sewing supplies.
According to a press release, the filing will allow Joanne to continue operating its business while repaying its debts, so it is not expected to have any impact on its stores or online shopping. In addition, our obligations to our employees, vendors, landlords and other trade creditors are paid in full or otherwise satisfied in full.
According to court documents, Joanne said that after sales spiked during the 2021 and 2022 COVID-19 lockdowns, interest rates rose and sales declined. Despite efforts to cut costs in June 2023, the company still had more than $1.06 billion in financing obligations at the time. of filing.
The company is expected to receive approximately $132 million in new capital and reduce its debt by more than $500 million.
JOANN expects to complete the Chapter 11 process as early as late April 2024, citing strong support from financial stakeholders. After this process, the company will likely become a private company and its shares will no longer be listed on Nasdaq or other national stock exchanges, according to a press release.
“Over the past few months, JOANN has delivered meaningful business improvements by implementing cost reduction focus, simplification and growth initiatives. We are excited about the progress we are making and are confident that the steps we are taking will enable JOANN to drive long-term growth. Financial and industry stakeholder support for this deal and positive business We appreciate their confidence in our ability to continue to drive change.”
Chris DiTullio, Chief Customer Officer and CE Interim Office Co-Head○
To learn more about how the company is moving forward, please visit: https://www.joannforward.com/
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