Crafts retailer JOANN files for bankruptcy protections

Fabrics and craft retailer Joann announced Monday it has filed for Chapter 11 bankruptcy protection in the state of Delaware.

Joann secured approximately $132 million in new financing and “related financial accommodations” and expects to reduce funded debt by about $505 million, the Ohio-based retailer said in its announcement.

Joann hopes to complete the process on an expedited basis as early as the end of next month. Apri

“This agreement is a significant step forward in addressing JOANN’s capital structure needs, and it will provide us with the financial resources and flexibility necessary to continue to deliver best-in-class product assortments and enhance the customer experience wherever they are shopping with us,” Chief Financial Officer Scott Sekella said in the news release.

Joann’s currently has more than 800 locations across the country, 95% of which “are cash flow positive.” The craft and fabric retailer has been around for around 80 years and started with a single store out of Cleveland, Ohio.

There are only four Joann’s locations in the North Bay: off Cleveland Avenue in Santa Rosa, on Rohnert Park Expressway in Rohnert Park, on Tamal Plaza Boulevard in Corte Madera and on Harbison Drive in Vacaville.

The company says the filing will have no impact on store operations. Locations and the retailer’s website will continue operations as normal.

You can reach Staff Writer Sara Edwards at 707-521-5487 or sara.edwards@pressdemocrat. com. On Twitter @sedwards380.