The arts and crafts giant Joann files for bankruptcy, but stores will remain open

Photo byAnthony92931 - Own work

Joann, the craft store chain previously known as Jo-Ann Fabrics, has filed for bankruptcy due to persistent financial challenges.

But DIYers need not worry just yet: The company's more than 800 stores nationwide will remain open and its website will stay active as the Hudson, Ohio-based company restructures its finances.

Scott Sekella, JOANN’s Chief Financial Officer and co-lead of the Interim Office of the CEO, said in a statement that:

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.

Joann and certain affiliates have filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware.

During the court-supervised bankruptcy proceedings, Joann anticipates receiving $132 million in new financing. Additionally, the company plans to reduce its funded debt by approximately $505 million. Despite these financial adjustments, Joann reassures customers, vendors, landlords, and other trade creditors that there will be no disruption in services.

Your thoughts

What are your thoughts on Joann's bankruptcy filing? It's reassuring to know that despite the financial restructuring, the company aims to maintain operations without disruptions for customers, vendors, landlords, and other trade creditors.

Let's hope this move leads to a stronger and more sustainable future for Joann.