(KNSI) — Fabric and craft store Joann has filed for Chapter 11.
The retailer said it has secured $132 million in funding to keep it afloat. It lists a total debt of $1 billion, but the filing could reduce its debt by $500 million.
Chapter 11 allows a debtor to propose a reorganization plan to stay in business and repay its creditors.
Joann’s stores and websites will still operate. It has 850 stores, including one in St. Cloud. Company officials say 95% of locations are cash flow positive, meaning more money is coming in than going out. The website will also remain online. According to officials, there should be no disruption in services.
The move will also take the company private as it is removed from Nasdaq and any other national stock exchange once the process is complete, which could be as soon as the end of next month.
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