Joann Inc., the Ohio-based fabric and craft retailer, has filed for Chapter 11 bankruptcy protection after 81 years in business.
The company made the announcement Monday, adding it could become privately owned as soon as next month.
Joann Fabrics and Crafts stores and website will remain open and continue operating as normal, according to a press 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," Chris DiTullio, chief customer officer and co-lead of the interim office of the CEO, said in the release.
JOANN FABRICS PIVOTS E-COMMERCE STRATEGY TO MEET NEW CUSTOMER DEMAND
The company was founded in 1943, and operates 829 store locations across 49 states.
"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," Scott Sekella, Joann’s chief financial officer and co-lead of the interim office of the CEO, added.
WHAT IS THE NIKE MEMBERSHIP PROGRAM? EXCLUSIVE REWARDS, PRODUCTS, MORE
Joann Inc. went private in 2011 before going public a decade later with an initial offering at $12 a share. The stock opened at 25 cents a share on Monday.
CLICK HERE TO READ MORE ON FOX BUSINESS
Joann Inc. has received about $132 million in commitments for new financing, and "expects to reduce funded debt on its balance sheet by approximately $505 million," according to the press release.
