Arts and crafts retailer Joann Inc. has filed for Chapter 11 bankruptcy protection but expects to emerge from administration within weeks.
Arts and crafts retailer Joann Inc. has filed for Chapter 11 bankruptcy protection but expects to emerge from administration within weeks.
The Ohio-based retailer announced that it had entered into what is called a “transaction support agreement” (TSA) with the majority of its financial stakeholders and is targeting a fast track turnaround to go private.
The financial restructuring contemplated by the TSA will be implemented through a pre-packaged court-supervised process in which Joann will continue to operate in the ordinary course of business. On completion of the process, progressed via the District of Delaware, Joann will be owned by a number of its lenders and industry parties and its shares will no longer be listed on the Nasdaq, the company said in a statement today.
Joann added that it had received around $132 million in fresh financing and said that it expects to reduce funded debt on its balance sheet by approximately $505 million.
