Fabric and craft retailer Joann will keep its 800 stores and website up and running after filing for Chapter 11 bankruptcy protection.

The retailer aims to come out of the proceedings by end of April and will become a privately owned entity, according to an AP report.

The company aims to reduce approximately $505 million in debt and has received commitments for $132 million in new financing, according to a statement from the company.

"Over the past several months, JOANN has made meaningful business improvements through the execution of our Focus, Simplify and Grow cost reduction initiative," Chris DiTullio, chief customer officer and co-lead of the Interim Office of the CEO, said in the statement. "We are excited by our progress on both top and bottom-line initiatives in the past year and are confident the steps we are taking will allow JOANN to drive long-term growth. 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. There is no other retailer with the same ability to serve sewists, quilters, crocheters, crafters and other creative enthusiasts as we have for the past 80 years, and we take great pride in seeing the passion and engagement of our millions of customers and our Team Members."

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