No need to pack up your Royal Dansk Danish Butter Cookie tin sewing kit collection just yet – Joann Fabrics is staying in business in Montgomery Township at Montgomery Commons Shopping Center, as the parent company goes through bankruptcy filings, per 6ABC Action News.
The Ohio-based 81-year-old craft and fabric retailer, per the report, filed for Chapter 11 bankruptcy protection, securing $132 million in new funding which cut its ballooning billion-dollar debt in half.
There are 850 store nationwide that will remain open through the bankruptcy, per the report.
Customers will still be able to use and order through the website.
"This agreement is a significant step forward in addressing Joann's capital structure needs, and it will provide us with the financial resources and flexibility necessary to continue to deliver best-in-class product assortments and enhance the customer experience wherever they are shopping with us," said Scott Sekella, the company's chief financial officer, in the company statement, per Action News.
Joann Fabrics is, unfortunately, unraveling like a spool of yarn in the wake of the Covid pandemic. Times were great for Joann in the height of the lockdown. And why not? People were stuck inside doing lots of arts and crafts to pass the quarantine.
Now, inflation is up, per the report, and essentials have taken the forefront over fabrics, yarn and glue. Furthermore, analysts see shoppers choosing cheaper and more affordable options like Hobby Lobby.
By next month, per the report, Joann Fabrics will go private.
Read more on the Joann bankruptcy here.
