Joann Fabrics and Crafts has filed for Chapter 11 bankruptcy protection as it seeks to reorganize its finances.
In a release accompanying its filing, Joann said its stores and website would remain open and continue operating as usual.
‘Customers, vendors, landlords, and other trade creditors will not see any disruption in services,’ it said in a release. ‘The Company remains as focused as ever on providing customers with quality products and services that inspire their creativity.
Joann has about 850 stores in 49 states, it said.
In its most recent quarter, Joann posted results showing it was more than $1 billion in debt, with shrinking revenues and a widening net loss, citing an “uncertain consumer environment.”
Wall Street reacted negatively to the news, with Joann shares trading down as much as 20%. The company went public in 2021 as the pandemic lingered and during an apparent boom in at-home, do-it-yourself consumer activity. But after it debuted at about $12 and rose to nearly $17, its shares are now worth less than $0.25.
Joann has been without a full-time CEO since May, when Wade Miquelon, who led the company for seven years, announced his retirement after a “challenging” year.
‘We appreciate the support from our financial and industry stakeholders in this agreement, and their confidence in our ability to continue driving positive business change,’ Chris DiTullio, chief customer officer and co-lead of the interim office of the CEO, said in the release.
‘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.”