JOANN Inc., fabric bankruptcy

HUDSON, Ohio (WJW) – JOANN Inc., the Hudson-based company, has filed for bankruptcy.

The fabric and craft company announced on Monday that it has entered into a Transaction Support Agreement with a majority of its financial stakeholders and additional industry financing parties to strengthen the Company’s financial position.

According to a press release from JOANN Inc., the chain listed assets of $500 million to $1 billion and liabilities of $1 billion to $10 billion on a Chapter 11 petition that was filed in Delaware State. 

A Chapter 11 filing allows the company to continue to operate its stores while it works on a plan to repay its up to 100,000 creditors.

JOANN’s stores and JOANN.com will continue to operate as normal, according to the release.

According to the release, Joann Inc. has received about $132 million in commitments for new financing.

“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,” JOANN’s Chief Financial Officer and co-lead of the Interim Office of the CEO said.

According to the release, JOANN Inc. has more than 800 stores across the United States.

This comes after two of the company’s storefronts closed in Northeast Ohio earlier this year. 

For more about JOANN Inc.’s bankruptcy filing, click here.