WHITEHALL TWP., Pa. - Ohio-based fabric and crafts retailer Joann announced Monday it filed for Chapter 11 bankruptcy.
The move comes as consumers continue to cut back on discretionary spending and pandemic-era hobbies.
In a statement, the company said all 829 stores — including those in Whitehall Township and Quakertown in the Lehigh Valley region — will continue to "operate normally" and that it expects to bounce back as early as late April.
The statement said Joann received around $132 million in new financing and expects to reduce funded debt on its balance sheet by about $505 million.
Scott Sekella, Joann's chief financial officer and co-lead of the interim office of the CEO, called it a "significant step forward" in addressing the company's financial needs, while remaining committed to customers.
Because it likely will shift to private ownership, the company said shares will no longer be listed on Nasdaq or available on other national stock exchanges.