Joann (Hudson, Ohio) has filed for Chapter 11 bankruptcy, and due to a restructuring plan already in place, the company may finish the process as a private company, it outlined in a press release.
It is also committed to keeping its stores (and website) open: “Under the [transaction support agreement] and related transaction documents, all obligations to employees, vendors, landlords and other trade creditors will be paid or otherwise satisfied in full and honored in the ordinary course of business,” reads the release.
The retailer has made a transaction support agreement with most of its stakeholders, a move in which it expects to reduce its debt by $505 million USD.
Joanna’s CFO and Co-Lead of the Interim Office of the CEO, Scott Sekella, says, “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. 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.”