Advertising
In its quest for a more potent foundation, Joann has entered into a Transaction Support Agreement (TSA) with most of its monetary stakeholders and other parties, which includes commitments for approximately $132 million in new funding.
The craft store with more than 800 outlets has filed a voluntary Chapter 11 lawsuit in the U. S. Bankruptcy Court for the District of Delaware and is seeking to reduce the debt financed on its balance sheet by about $505 million. Joann hopes to push the recapitalization process forward and likely complete it by the end of April 2024.
After leaving Chapter 11 protection, Joann plans to go private. In addition, all parties have agreed to a six-month extension of Joann’s existing ABL (asset-based lending) and FILO (first-in, last-out) credits once the court-supervised procedure is completed. According to the AST, monetary obligations to employees, suppliers, owners, and creditors will be paid and revered in the course of business.
In early 2023, Joann was looking to reduce its annual costs by $200 million, as part of a plan that was expected to come to fruition by the beginning of fiscal year 2025.
Advertising
“Over the past several months, Joann has delivered significant business innovations through the execution of our Focus, Simplify and Grow cost-cutting initiative,” Chris DiTullio, director of visits and co-head of the interim office of the CEO, said in a statement. We are excited about our progress on revenue and results projects over the past year and are confident that the moves we are making will enable Joann to drive long-term growth.
Joann has created a report that provides more detailed data on the ongoing restructuring process.
Join the retail network as we combine for 3 days of strategy sessions, important off-site networking events, and interactive learning experiences.
Advertising
Advertising
Access exclusive content, adding newsletters, reports, research, videos, podcasts, and more.
Address: 100 Broadway, 14th Floor New York, NY 10005
Phone: 1. 888. 603. 3626
Email: [at] retailtouchpoints. com
Social: