Hudson, Ohio – March 18, 2024 – Joann Inc., the leading fabric and craft retailer in the United States, has secured a significant agreement with its financial backers and industry partners to strengthen its financial health. This move comes after months of implementing cost-saving measures under the company’s “Focus, Simplify and Grow” initiative.
The agreement includes critical aspects:
- Reduced Debt: Joann expects to cut its debt by roughly $505 million.
- New Financing: The company has secured an additional $132 million in financing and related financial accommodations.
- Extended Credit Facilities: Joann’s existing credit lines will be extended by six months upon exiting the court-supervised process.
- Business as Usual: Importantly, the agreement ensures that Joann will maintain normal operations throughout this financial restructuring. This includes uninterrupted service for customers, vendors, landlords, and other business partners.
Leadership Statements
Joann’s leadership expressed optimism about the agreement and its impact on the company’s future.
- Chris DiTullio, Chief Customer Officer: Highlighted the progress made through cost-reduction efforts and Joann’s unique position in serving creative enthusiasts. He emphasized the company’s confidence in achieving long-term growth.
- Scott Sekella, Chief Financial Officer: Described the agreement as a major step forward in addressing Joann’s capital structure. He pointed out the financial flexibility it provides to maintain a best-in-class product selection and enhance the customer experience across all channels, including the vast network of stores, most of which are profitable.
Streamlined Operations
The financial restructuring will be implemented through a pre-packaged Chapter 11 bankruptcy process overseen by the court. Joann’s stores and online store will remain fully operational during this period. The company anticipates completing this process by late April 2024 and emerging as a private company owned by its lenders and industry partners. Its shares will be delisted from the stock exchange.
More Information
For further details about the financial restructuring, interested parties can visit JOANNforward.com. Court documents and claims process information are available at https://cases.ra.kroll.com/Joann. Additionally, you can contact the company’s claims agent, Kroll, or refer to the Current Report on Form 8-K filed with the Securities and Exchange Commission.
