Joann Inc., the arts and crafts retailer based in Ohio, has declared bankruptcy after operating for 81 years. The company announced plans to possibly go private next month.
Their stores and website will stay open, continuing business as usual. Chris DiTullio, a top executive, emphasized their unique role for creative enthusiasts over the past 80 years.
"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.
Founded in 1943, Joann boasts 829 stores across 49 states. The bankruptcy is seen as a move to address financial structure and ensure future customer service quality, according to Scott Sekella, Joann's CFO.
"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," Sekella added.
In 2011, Joann became a private company, then went public in 2021 with shares initially priced at $12. However, share prices fell to 25 cents.
The company has secured $132 million in new financing. It plans to cut its debt by around $505 million, aiming for a stronger financial future.