Joann Fabrics and Crafts has decided to seek protection under Chapter 11 of the United States Bankruptcy Code in order to reorganize its financial situation. The company Joann stated in a press release that accompanied its filing that its stores and online would continue to be open and that business would proceed as usual. “Customers, vendors, landlords, and other trade creditors will not see any disruption in services,” according to a statement released by the company. The company continues to maintain its commitment to offering clients with high-quality goods and services that provide them with the inspiration they need to be creative.
As stated, Joann operates about 850 stores throughout 49 states. The most recent quarter of Joann’s financial reports revealed that the company was more than one billion dollars in debt, with declining revenues and a widening net loss. The company cited a “uncertain consumer environment” as the reason for these results. A negative reaction was seen on Wall Street in response to the announcement, with shares of Joann trading down as much as twenty percent. When the epidemic was still going strong and there was a noticeable increase in the number of people doing their own do-it-yourself projects at home, the company went public in 2021. However, after beginning trading at approximately $12 and climbing to over $17, the value of its shares has dropped to less than $0.25.
Ever since Wade Miquelon, who had been the CEO of Joann for seven years, announced his resignation in May, the firm has been without a full-time CEO. Miquelon’s announcement came after a “challenging” year. According to Chris DiTullio, chief customer officer and co-lead of the interim office of the CEO, “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,” the statement was made in the press release. We take great delight in seeing the passion and engagement of our millions of customers and our Team Members. There is no other retailer that has the same ability to serve creative enthusiasts as we have over the past eight decades, including sewists, quilters, crocheters, crafters, and other creative enthusiasts.
