Shiv Media Telegram Reports on Joann Fabrics Declaration for Chapter 11 Bankruptcy
2 min read
Craft retailer Joann Fabrics and Crafts has filed for Chapter 11 bankruptcy as part of a financial reorganization plan. Despite this, the company has reassured customers, vendors, landlords, and other trade creditors that its stores and website will remain open and continue operating as usual.
With over $1 billion in debt, decreasing revenues, and increasing net losses in its most recent quarter, Joann has faced challenges in the market. This has been reflected in Wall Street’s negative response to the news, with Joann shares trading down by as much as 20%.
The company’s struggles have been compounded by the fact that its shares, which were offered to the public in 2021 during the pandemic, are now valued at less than $0.25. Additionally, Joann has been without a full-time CEO since last May when Wade Miquelon retired after a challenging year.
Chris DiTullio, chief customer officer and co-lead of the interim office of the CEO, expressed gratitude for the support received from financial and industry stakeholders during this difficult time. Joann emphasized its dedication to serving creative enthusiasts for the past 80 years and highlighted the passion of its millions of customers and team members.
Despite the bankruptcy filing, Joann is determined to continue its operations and uphold its commitment to providing a wide range of crafting supplies to its loyal customer base. With a long history in the industry, Joann Fabrics and Crafts remains optimistic about its future prospects.
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