HUDSON, Ohio – A big retailer in the fabrics industry is filing for bankruptcy.
But, Ohio-based Joann also says in addition to Chapter 11, it’s entering what’s called a “Transaction Support Agreement.”
At issue, the company says, is an effort to reduce $505 million of so-called “funded debt.”
It’s also receiving $132 million in new financing.
Joann says there will be no impact on stores or its online business, and that 95 percent of the company’s 800 stores are “cash flow positive.”
“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,” said Scott Sekella, Chief Financial Officer, in a news release.
Joann could be out of bankruptcy as soon as next month.
Peoria’s Joann store is in the Metro Centre. There are also locations in Galesburg and Bloomington in the immediate area.
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