JOANN Fabrics Bankruptcy: What Lies Ahead for Washington Locations?

After 81-years Joann, the fabric and craft retailer has filed for bankruptcy.

The company, based in Hudson, Ohio, filed for chapter 11 bankruptcy protection after securing $132-million in fresh financing to reduce its debt. The business issued a statement announcing that it has entered into a Transaction Support Agreement (“TSA” or “Agreement”) with a majority of its financial stakeholders. The company hopes to reduce its debt by $505 million. Joann operates 850 stores nationwide. The retailer will become a private company owned by creditors. Joann is currently more than $1 billion in debt.

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“Over the past several months, JOANN has made meaningful business improvements through the execution of our Focus, Simplify and Grow cost reduction initiative,” said Chris DiTullio, Chief Customer Officer and co-lead of the Interim Office of the CEO. “We are excited by our progress on both top and bottom-line initiatives in the past year and are confident the steps we are taking will allow JOANN to drive long-term growth. 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. 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.”

Joann Fabrics and Crafts stores and website will stay open and operate as normal.

There are 28 Joann locations in Washington.