JOANN Files For Chapter 11 Bankruptcy

HUDSON, OHIO (WJON News) - The craft and fabric retailer JoAnn has filed for Chapter 11 bankruptcy.

The company operates about 850 stores in 49 states, including a store in St. Cloud.

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In several initial bankruptcy filings, company management secured funding so all stores and the website would continue to operate normally, all staff would continue to get paid, and all vendor contracts would be honored through the course of the financial restructuring.

Scott Sekella is JOANN’s Chief Financial Officer and co-lead of the Interim Office of the CEO.

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. This includes our more than 800 stores across the United States, 95 percent of which are cash flow positive. We remain committed to our suppliers, partners, Team Members, and other stakeholders, and are focused on ensuring we continue to operate as usual so we can continue to best serve our millions of customers nationwide.

Industry insiders say the end of the COVID pandemic, coupled with a slowdown in discretionary spending and other retailers offering crafts and supplies, has forced companies like JoAnn to change their business model.

The company was founded in Cleveland, Ohio in 1943. It grew into a national chain named “Jo-Ann Fabric and Craft Stores”, and then shortened the name to “JoAnn” to celebrate the 75th anniversary.

In 2021, the company went public with a stock sale of $12 per share. JoAnn (JOAN) is currently selling at $0.19.

Officials say they have received commitments for about $132 million of their $505 million debt and will reorganize as a private company.

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