Joann Fabric, With 1 RI Location, Files For Bankruptcy

RHODE ISLAND — The fabric and craft retailer Joann, which has one store in Rhode Island, has filed for bankruptcy as it struggles to recover from pandemic losses and a change in customer spending habits

All of its 850 stores will remain open during Chapter 11 bankruptcy proceedings, the 81-year-old Ohio-based retailer said in a statement Monday. Joann's Rhode Island location is at 1500 Bald Hill Road Ste A in Warwick.

The company said it has acquired $132 million in new funding. The company plans to use this funding to reduce its debt by approximately $505 million. Over the past few years, the company's debt has climbed to $1 billion. Sales had slumped after a jump during the pandemic, when Americans were isolated in their homes and spent more money on sewing and craft supplies. Due to the subsequent inflation, many people had to cut back on their discretionary spending.

Joann customers won’t see any disruption of service, and the company "remains as focused as ever on providing customers with quality products and services that inspire their creativity," according to the statement.

“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,” Scott Sekella, the company’s chief financial officer, said in the statement.