JOANN Enters New Era of Creativity Poised to Serve the Sewing, Craft and DIY Industry with Lowest Level of Debt in More than a Decade
30 April 2024 - 8:01PM
JOANN, the nation’s category leader in sewing and fabrics with one
of the largest arts and crafts offerings, announced today it has
successfully emerged from its court-supervised financial
restructuring process, and has substantially reduced its funded
debt by half while further enhancing its liquidity through a $153
million exit financing facility that replaces the previously
announced debtor-in-possession financing. The prepackaged Chapter
11 plan was supported by the Company’s lenders, creditors and
industry partners, and became effective April 30, 2024, enabling
JOANN to be in its best financial position in recent history.
As previously announced, there were no store closures or layoffs
in connection with this process. From yarn and fabrics to crafts
and home décor, JOANN continues to serve as a one-stop destination
for creativity in its more than 800 stores, on JOANN.com and on its
mobile app.
“For more than 80 years, JOANN has been a leader in the
textiles, sewing and craft industries, and we are now moving
forward on the strongest financial foundation in many years. I am
confident in this company’s unique ability to continue serving and
inspiring handmade happiness with our millions of loyal customers
for a long time to come,” said Chris DiTullio, Chief Customer
Officer and Co-Lead of the Interim Office of the CEO. “We see great
opportunities ahead for this business and are as committed as ever
to our customers, Team Members and communities nationwide.”
JOANN’s Prepackaged Joint Plan of Reorganization was confirmed
by the Court on April 25 with the unanimous support from all voting
creditors. The expedited process lasted less than 45 days thanks to
strong alignment and support among all involved parties. In
conjunction with its exit from the court supervised process, JOANN
is now a private company.
Scott Sekella, Chief Financial Officer and Co-Lead of the
Interim Office of the CEO, added, “We are very pleased with how
smoothly and swiftly this process has progressed and are incredibly
appreciative of the support from our lenders, creditors and
industry partners, not to mention our more than 18,000 Team Members
in our stores, distribution centers and corporate headquarters who
remain committed to our mission. We have now emerged as a
significantly strengthened business and will continue to invest in
our teams, communities and the customer experience.”
For more information on JOANN, visit JOANN.com.
About JOANN
For 80 years, JOANN has inspired creativity in the hearts,
hands, and minds of its customers. From a single storefront in
Cleveland, Ohio, the nation’s category leader in sewing and fabrics
and one of the fastest growing competitors in the arts and crafts
industry has grown to include over 800 store locations across 49
states and a robust e-commerce business. With the goal of helping
every customer find their creative Happy Place, JOANN serves as a
convenient single source for all of the supplies, guidance, and
inspiration needed to achieve any project or passion.
Amanda Hayes
amanda.hayes@joann.com