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Crafting and fabrics retailer Joann has filed for Chapter 11 bankruptcy protection in Delaware.
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The haberdashery and crafting retailer that operates a 36,500-square-foot store at the Court at Oxford Valley in Falls Township said it is working to reorganize its finances.
Joann’s local store remained open as of this week.
Despite the bankruptcy filing, Joann leadership said in a statement that 95 percent of its stores are profitable and that there will be no disruption in payment for customers, vendors, landlords, and other trade creditors.
The Ohio-based retailer has managed to secure approximately $132 million in new financing and related financial accommodations to reduce its funded debt. The company expects to cut down its debt by about $505 million, halving its current $1 billion total debt.
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“Customers, vendors, landlords, and other trade creditors will not see any disruption in services,” Joann said in a release. “The Company remains as focused as ever on providing customers with quality products and services that inspire their creativity.
Joann announced its stock would be delisted from the New York Stock Exchange and will be transitioning into a privately held entity as early as April.
Speaking to CNN, one expert noted that Joann’s bankruptcy had been anticipated for some time, describing it as “a matter of when, rather than if.”
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Founded in 1943, Joann Fabric and Crafts has long been a staple for crafting enthusiasts and fabric shoppers.
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