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BumRushDaShow

(129,687 posts)
Sat Mar 2, 2024, 05:21 PM Mar 2

Crafts Retailer Joann Is Planning a Bankruptcy Filing That Would Hand Keys to Lenders

This discussion thread was locked as off-topic by Omaha Steve (a host of the Latest Breaking News forum).

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 aren’t final, but the company is seeking to line up enough support from lenders that would allow it to exit Chapter 11 quickly in what’s 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 didn’t 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

17 replies = new reply since forum marked as read
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Crafts Retailer Joann Is Planning a Bankruptcy Filing That Would Hand Keys to Lenders (Original Post) BumRushDaShow Mar 2 OP
Aw. I never had one near enough to me to stop in to. electric_blue68 Mar 2 #1
They sell cheap ****! One store near me sold beautiful stuff until they drove demigoddess Mar 2 #12
That's sad I shopped there at the beginning of the pandemic to get materials to make face masks kimbutgar Mar 2 #2
Crap Deep State Witch Mar 2 #3
Wow, that journalist struggles with financial lingo bucolic_frolic Mar 2 #4
I'm sad PennyC Mar 2 #5
Michael's sells fabrics (if you have any near you although I guess they sell online too) BumRushDaShow Mar 2 #9
Well that should make PlutosHeart Mar 2 #6
Me too... Tikki Mar 2 #10
My wife is a little sad TxGuitar Mar 2 #7
Good, those assholes gobbled up every fabric store in town except one Warpy Mar 2 #8
Yeah, they just seemed to race to the bottom TexasBushwhacker Mar 2 #14
Not surprised. SarahD Mar 2 #11
Bummer IcyPeas Mar 2 #13
Damn. area51 Mar 2 #15
The one near me is great Mz Pip Mar 2 #16
AFTER a review by forum hosts LOCKING Omaha Steve Mar 2 #17

electric_blue68

(14,967 posts)
1. Aw. I never had one near enough to me to stop in to.
Sat Mar 2, 2024, 05:23 PM
Mar 2

demigoddess

(6,645 posts)
12. They sell cheap ****! One store near me sold beautiful stuff until they drove
Sat Mar 2, 2024, 07:16 PM
Mar 2

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)
2. That's sad I shopped there at the beginning of the pandemic to get materials to make face masks
Sat Mar 2, 2024, 05:25 PM
Mar 2

Deep State Witch

(10,469 posts)
3. Crap
Sat Mar 2, 2024, 05:26 PM
Mar 2

Just when I wanted to get back into cosplaying.

bucolic_frolic

(43,374 posts)
4. Wow, that journalist struggles with financial lingo
Sat Mar 2, 2024, 05:30 PM
Mar 2

"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)
5. I'm sad
Sat Mar 2, 2024, 05:48 PM
Mar 2

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)
9. Michael's sells fabrics (if you have any near you although I guess they sell online too)
Sat Mar 2, 2024, 06:21 PM
Mar 2
https://www.michaels.com/shop/fabric-sewing-shop

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)
6. Well that should make
Sat Mar 2, 2024, 05:51 PM
Mar 2

Hobby Blobie extremely happy.
Getting rid of their competition.
I loved JoAnn Fabrics.

Tikki

(14,560 posts)
10. Me too...
Sat Mar 2, 2024, 06:35 PM
Mar 2

No way will I ever shop at holy lobbiests.

Tikki

TxGuitar

(4,211 posts)
7. My wife is a little sad
Sat Mar 2, 2024, 05:55 PM
Mar 2

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)
8. Good, those assholes gobbled up every fabric store in town except one
Sat Mar 2, 2024, 06:20 PM
Mar 2

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)
14. Yeah, they just seemed to race to the bottom
Sat Mar 2, 2024, 08:18 PM
Mar 2

Once people started shopping online, they really couldn't keep up.

SarahD

(1,256 posts)
11. Not surprised.
Sat Mar 2, 2024, 06:37 PM
Mar 2

Prices way too high.

IcyPeas

(21,916 posts)
13. Bummer
Sat Mar 2, 2024, 08:09 PM
Mar 2

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)
15. Damn.
Sat Mar 2, 2024, 08:21 PM
Mar 2

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)
16. The one near me is great
Sat Mar 2, 2024, 08:26 PM
Mar 2

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 don’t 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)
17. AFTER a review by forum hosts LOCKING
Sat Mar 2, 2024, 08:47 PM
Mar 2

Considering, a bankruptcy is not final.

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