The company behind the fabric and craft store JOANN, based in Hudson, is on track to bounce back from bankruptcy. Soon, it will become a private company after a U.S. bankruptcy court approved its reorganization plan.
Joann Nearing Successful Bankruptcy Exit
Fabric and craft retailer Joann is set to wrap up its financial overhaul and exit bankruptcy soon, as stated on the Chain Store Age website. Under the plan, creditors will slash about $505 million of Joann's nearly $1.1 billion debt. Once out of bankruptcy, some of its creditors will become shareholders in Joann.
Throughout the process, Joann's 800-plus stores have stayed open, safeguarding the jobs of its 18,000 associates. Chris DiTullio, Joann's chief customer officer and co-lead of the interim office of the CEO, expressed satisfaction at the swift progress less than 40 days into the court-supervised procedure.
The company looks forward to using its strengthened financial footing to enhance customer experience, product variety, and support for its nationwide workforce.
As reported by WKYC, JOANN's Chief Financial Officer and co-interim CEO, Scott Sekella, expressed gratitude to the company's financial and industry supporters.
In a news release on Thursday, Sekella acknowledged their backing, which facilitated smooth operations during the restructuring process. He highlighted their confidence in JOANN's team members and business prospects, as reflected in their investments.
According to the Associated Press, JOANN informed the court in March that it had received $132 million in new financing and anticipated slashing its funded debt by approximately $505 million.
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Sekella emphasized JOANN's enhanced financial position, citing a strengthened balance sheet and improved liquidity. He noted this positioning would enable collaborative efforts with vendors, business partners, and landlords.
Ultimately, Sekella underscored JOANN's commitment to fostering creativity among customers, aiding them in finding their happy place, as per WKYC.
JOANN Reaches Milestone in Bankruptcy Process
In a written statement, Chris DiTulio, Chief Customer Officer and interim co-CEO of JOANN expressed satisfaction with the company's progress. DiTulio credited the dedication of JOANN's team members, the support from industry partners and landlords, and customers' enthusiasm for reaching this significant milestone less than 40 days into the court-supervised process.
Scott Sekella, the other co-interim CEO and financial officer, echoed DiTulio's sentiments, emphasizing JOANN's improved economic standing. With a strengthened balance sheet and increased liquidity, Sekella highlighted JOANN's readiness to collaborate with vendors, business partners, and landlords to enhance customer experience.
JOANN has been without a permanent CEO for nearly a year since former CEO Wade Miquelon retired in May 2023. Miquelon described fiscal 2023 as a "challenging year" before his departure. The retailer's board of directors has sought a new CEO since then.
According to the bankruptcy filing, JOANN remains optimistic about its future despite its debt. The filing revealed that 96% of JOANN's stores generate positive cash flow. Additionally, online sales contributed 13% of revenue in fiscal 2024. JOANN assured that its stores and online sales will continue without any changes.
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