After eight decades, craft retailer Joann has filed for bankruptcy.
In a statement released on Monday, the national store chain said it would receive $132 million in new financing and related financial accommodations. The company expects to reduce funded debt on its balance sheet by approximately $505 million with the influx.
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“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,’ said Scott Sekella, JOANN’s Chief Financial Officer and co-lead of the Interim Office of the CEO.
The company is expected to continue running its website and its 800+ stores are expected to stay open during this time.
According to the company website, Joann opened its first store in Cleveland, Ohio more than 80 years ago. It has grown to include 829 store locations across 49 states.