Joann craft store filing for bankruptcy
Joann, the craft store chain, has filed for bankruptcy but will remain open as it restructures its finances. The company expects to receive new financing and reduce its debt without disrupting services to customers, vendors, and landlords.
Key Points
- COVID-19 pandemic spurred growth in the sewing and crafting industry
- Joann saw a decline in sales leading to restructuring and layoffs
- Third-quarter net sales dipped by 4.1% compared to the previous year
Pros
- Joann will remain open and operate as usual during the bankruptcy process
- Expected new financing of $132 million and a reduction in debt by $505 million
Cons
- Joann will become a private company and be delisted from the Nasdaq stock exchange