Crafts Retailer Joann Is Planning a Bankruptcy Filing That Would Hand Keys to Lenders
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Source: Bloomberg
March 2, 2024 at 12:50 PM EST
Crafts retailer Joann Inc. is considering a bankruptcy filing as soon as next week as part of a deal that would hand control of the company to lenders while allowing it to shed expensive debt, according to people with knowledge of the matter.
The company, which sells fabric and craft supplies and has around 850 stores in the US, has been holding confidential talks with its lenders as it seeks fresh capital to bolster its cash reserves.
Discussions are ongoing and plans arent final, but the company is seeking to line up enough support from lenders that would allow it to exit Chapter 11 quickly in whats known as a pre-pack filing, the people said. Chapter 11 bankruptcies allow a company to continue operating while it works out a plan to repay creditors.
A representative for Joann didnt immediately respond to a request for comment outside of normal business hours.
Read more: https://www.bloomberg.com/news/articles/2024-03-02/crafts-chain-joann-joan-is-planning-a-bankruptcy-filing-giving-lenders-control?srnd=homepage-americas
electric_blue68
(14,967 posts)demigoddess
(6,645 posts)out the competition and then switched overnight into a store that sold only the worst stuff in the world. stuff I would never sew on. Sewing is a big part of my life but haven't bought anything at Joann's in years. I get my fabric from Goodwill or another thrift store. Sheets can be turned into curtains and play clothes. (flannel sheets make pajamas.) Better stuff than Joann's sells.
kimbutgar
(21,226 posts)Deep State Witch
(10,469 posts)Just when I wanted to get back into cosplaying.
bucolic_frolic
(43,374 posts)"control of the company to lenders" has been known as debtor-in-possession for decades.
It means owners, shareholders if any, have been stripped of their equity. Shares worth zero. That has been the pattern since the 1980s. Even Kmart #1 BK went that route.
PennyC
(2,302 posts)This was the last chain that sold fabric (albeit not-so-good). When I was a teen every department store still had a fabric and sewing section, and so did the 5 & 10s (Woolworth and Grants).
BumRushDaShow
(129,687 posts)We had a Joann's years and years ago that closer to me that closed and then the Walmart not far from me was selling fabric for awhile (haven't been in there in a long time so not sure if they still have any).
About all that is left that I use a lot for craft stuff (places like Hobbledy Lobby don't count and I only discovered there was one outside of Philly) is Michaels (where there is one not too far from me).
PlutosHeart
(1,294 posts)Hobby Blobie extremely happy.
Getting rid of their competition.
I loved JoAnn Fabrics.
No way will I ever shop at holy lobbiests.
Tikki
TxGuitar
(4,211 posts)She is a very experienced sewist and doesn't really buy fabric at Joann unless it is an emergency. She does buy thread and other small stuff there. We have a hobby Lobby close but she wouldn't step foot in there. She buys most of her fabric from small shops online.
Warpy
(111,385 posts)Once they changed the name on the sign, they stopped carrying decent quality fabric and went for low quality cloth suitable for crafts but not for clothing. Since I had always made most of my own clothes, it was a blow.
I've hated that company with the fury of a thousand supernovae for 30 years. That they overextended in their rush to destroy competition is no surprise. Good fucking bye.
TexasBushwhacker
(20,226 posts)Once people started shopping online, they really couldn't keep up.
SarahD
(1,256 posts)Prices way too high.
IcyPeas
(21,916 posts)There's a store 5 minutes away. I go there for crafty stuff... acrylic paints, etc. I use their app and get discounts.
It's a huge 2 level store ... fabric, crafts, jewelry stuff, children's craft kits, etc is on one level and the seasonal stuff on the other level. The store was previously a Linens and Things.
I am not a frequent sewer so I wasn't aware that their fabrics aren't considered the best, they're fine for my level. The selection here is huge...
I'll be sad if it closes.
area51
(11,929 posts)I've bought yarn from them. They tend to be on the expensive side but you have to wait until they have a sale, which is quite often.
Mz Pip
(27,454 posts)Lots of different kinds of arts and crafts materials and a decent framing dept. I shop there often, not so much for fabric, since I dont sew but I make wreaths for every season and they always have specials on their wreath materials. I buy small canvases for my granddaughters paintings. If it closes, I will miss it.
Omaha Steve
(99,789 posts)Considering, a bankruptcy is not final.