Joann Fabrics files for Chapter 11 bankruptcy

Joann Fabrics and Crafts has filed for Chapter 11 bankruptcy as it seeks to reorganize its finances.

Joann Fabrics and Crafts has filed for Chapter 11 bankruptcy as it seeks to reorganize its finances.

In a release accompanying its filing, Joann said stores and the company's website would remain open and continue operating as usual.

"Customers, vendors, landlords, and other trade creditors will not see any disruption in services," it said in a release. "The Company remains as focused as ever on providing customers with quality products and services that inspire their creativity.

In its most recent quarter, Joann posted results showing it was more than $1 billion in debt, with shrinking revenues and a widening net loss, citing an “uncertain consumer environment.”

Wall Street reacted negatively to the news, with Joann shares trading down as much as 20%. The company went public in 2021 as the pandemic lingered and during an apparent boom in at-home, do-it-yourself consumer activity. But after debuting at about $12 and rising to nearly $17, its shares are now worth less than $0.25.

https://www.nbcnews.com/business/business-news/joann-fabrics-files-chapter-11-bankruptcy-rcna143851

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