For decades, this company, with around 850 stores, has been the one-stop-shop for all things crafting, sewing, decorating and more. Almost nostalgic, many can recall shopping experiences with parents and grandparents at Joann's.
One of the largest craft and fabric retailers, Joann's has been around for decades, established in 1943, according to the company website. With approximately 850 stores in 49 states, the odds of visiting one of the locations are pretty high.
However, the beloved store filed for bankruptcy on Monday. What does that mean for store visits?
More: Joann files ch. 11 bankruptcy 2024Fabric and crafts retailer Joann files for Chapter 11 bankruptcy protection: What to know
Here's what we know about Joann's 2024 bankruptcy filing, as well as future plans:
Is Joann fabrics filing for bankruptcy?
Yes. Joann filed for Chapter 11 bankruptcy in Delaware on Monday, according to a news release from the company.
Joann fabric files for bankruptcy
Joann filed for bankruptcy on Monday, March 18. The company, through a transaction support agreement, will receive $132 million in "new financing and related financial accommodations and expects to reduce funded debt on its balance sheet by approximately $505 million," according to the release. This will help to relieve about half of the company's $1 billion overall debt.
The company's Chapter 11 case was filed in the U.S. Bankruptcy Court for the District of Delaware. Joannexpects to complete the process on an expedited basis, as early as late April 2024.
What is bankruptcy?
Bankruptcy is a legal process for people or businesses with outstanding debt to eliminate part, or all, of the debt, and establish a repayment plan. According to the United States Courts, all bankruptcy cases are handled in federal courts and filing for bankruptcy "helps people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses."
What is Chapter 11 bankruptcy?
According to the United States Courts, Chapter 11 bankruptcy "frequently referred to as a "reorganization" bankruptcy. Usually, the debtor remains “in possession,” has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money. A plan of reorganization is proposed, creditors whose rights are affected may vote on the plan, and the plan may be confirmed by the court if it gets the required votes and satisfies certain legal requirements."
Chapter 11 vs Chapter 7 bankruptcy
Businesses frequently file both Chapter 7 and Chapter 11 bankruptcy. However, Chapter 7 is to liquidate the business while Chapter 11 is to reorganize the business.
Joann fabric stock
According to Nasdaq, where Joann's stock is publicly traded under the ticker symbol “JOAN," pre-market trading was down over 7%. The pre-market high was at $0.1841 and the pre-market low was at $0.1275 as of Tuesday morning.
Joann fabrics headquarters
Joann's is based out of Hudson, Ohio. It is located at 5555 Darrow Road in Hudson.
Joann fabrics CEO
According to the company's management page, upper management positions are as follows:
- Christopher DiTullio: Executive Vice President, Chief Customer Officer and Co-Lead Interim Office of the CEO
- Scott Sekella: Executive Vice President, Chief Financial Officer and Co-Lead Interim Office of the CEO
- Robert Will: Executive Vice President and Chief Merchandising Officer
- Ann Aber: Senior Vice President, Chief Legal Officer & Secretary
- Joe Thibault: Senior Vice President and Store Operations
- Lisa Wittman-Smith: Senior Vice President and Inventory Management & Business Insights
- John Stalcup: Senior Vice President and Chief Information Officer
- Dennis Sheldon: Senior Vice President and Supply Chain
Will Joann fabrics close?
No. Joann stores and the website will continue to operate as normal. “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," Sekella said.
"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.”
Joann locations near Indianapolis
According to the Joann website, there are five stores in the Indianapolis area. Here's where:
- 10030 E. Washington St. in Indianapolis
- 1260 US 31 North in Greenwood
- 10401 E US Highway 36 in Avon
- 1361 86th St. West in Indianapolis
- 8714 Castle Creek Parkway East Drive in Indianapolis
