Jo-Ann, a well-known North American retail chain of fabrics and crafts, has declared bankruptcy due to the ongoing economic impact of the coronavirus pandemic. The company announced last March that it had reached a Transaction Support Agreement (TSA) to help strengthen its financial situation, along with securing $132 million in new funds to reduce its debt by half.
In a press release, Jo-Ann stated that it voluntarily filed for Chapter 11 in the US Bankruptcy Court with the goal of eventually becoming a private company. The company’s chief financial officer, Scott Sekella, expressed optimism about the agreement, stating that it will provide them with the resources needed to continue offering a wide range of products and maintain their network of over 800 stores across the United States.
Despite the bankruptcy filing, Jo-Ann reassured stakeholders that its operations will continue as usual. The company emphasized its commitment to suppliers, partners, employees, and customers, stating that it will strive to provide the best service to its millions of customers worldwide.
Chris DiTullio, the company’s chief customer officer, highlighted the steps taken by Jo-Ann in recent months to improve its business operations and drive long-term growth. The company also mentioned that it has filed motions to ensure uninterrupted operations during the restructuring process, including paying salaries and benefits to employees.
Neil Saunders, CEO and retail analyst at GlobalData, predicted Jo-Ann’s bankruptcy and suggested that the process will provide the chain with necessary capital injections to streamline its operations and reduce debt levels. The restructuring will be overseen by a court and is intended to help Jo-Ann emerge stronger from the current economic challenges.
Overall, Jo-Ann remains focused on its commitment to serving the arts and crafts community and is determined to navigate through this challenging period to continue providing quality products and services to its customers.