Craft-centric retailer Joann announced the United States Bankruptcy Court for the District of Delaware confirmed the company’s prepackaged joint plan of reorganization, clearing the way for it to emerge from Chapter 11 status.
The retailer stated it expects to complete its financial restructuring and emerge from the court-supervised process within days. In connection with its emergence, Joann would become a private company owned by certain of its financial stakeholders and industry parties.
Through the bankruptcy process, Joann’s more than 800 store locations remain open, and the joann.com website continues to do business.
In announcing the development, Chris DiTullio, Joann chief customer officer and co-lead of the interim office of the CEO, said, “We are pleased to have reached this significant milestone less than 40 days after initiating our court-supervised process. We could not have reached this point without the unwavering dedication of our team members, the continued support of our industry partners and landlords, and the tremendous loyalty and enthusiasm of our customers. Joann will move forward with a strengthened financial foundation, allowing us to invest in customer experience enhancements, our best-in-class product assortments, and our more than 18,000 team members nationwide.”
Scott Sekella, Joann’s chief financial officer and co-lead of the interim office of the CEO, added, “We are grateful to our financial and industry stakeholders, whose support enabled us to continue operating smoothly and move through this process on an expedited basis. Their investment not only provides us with additional financial resources, but also reflects their confidence in our team members and in our business to seize on the opportunities ahead. With a strengthened balance sheet and improved liquidity, we are better positioned to work collaboratively with our vendors, business partners and landlords, and ultimately to inspire the creativity in our customers that helps them find their happy place.”
