Top fabric and crafts retailer files for bankruptcy: What’s the impact on Colorado?
By Jim Lawson on March 18, 2024
Top fabric and crafts retailer files for bankruptcy: What’s the impact on Colorado?
Long-running retail chain Joann Fabrics and Crafts has filed for Chapter 11 bankruptcy as part of a structural reorganization. The company says its stores and online sales will continue to operate as usual.
Joann has been around since 1943, but is currently more than a billion dollars in debt as retail sales continue to shrink. The restructuring will eliminate about $500 million of that debt.
A statement from Chris Ditullio, Cheif Customer Officer of Joann Fabrics says “Over the past several months, JOANN has made meaningful business improvements through the execution of our Focus, Simplify and Grow cost reduction initiative. We are excited by our progress on both top and bottom-line initiatives in the past year and are confident the steps we are taking will allow JOANN to drive long-term growth. We appreciate the support from our financial and industry stakeholders in this agreement, and their confidence in our ability to continue driving positive business change.”
Joann Fabrics has 13 Colorado locations with 8 in the Denver area.
