Crafts retailer Joann files for Chapter 11 bankruptcy

FILE – People walk into and out of a Joann store, Sept. 6, 2007, in Garfield Heights, Ohio. The fabric and crafts retailer has filed for Chapter 11 bankruptcy protection, as consumers continue to cut back on discretionary spending. In a Monday, March 18, 2024 release, the Hudson, Ohio-based company said that it expected to emerge from bankruptcy as early as the end of next month. (AP Photo/Tony Dejak, file)

NEW YORK (AP) — Fabric and crafts retailer Joann has filed for Chapter 11 bankruptcy protection, as consumers continue to cut back on discretionary spending and pandemic-era hobbies.

The Hudson, Ohio-based company said that it expected to emerge from bankruptcy as early as the end of next month.

Following this process, Joann will likely become privately-owned by certain lenders and industry parties, the company added — meaning its shares would no longer be listed on stock exchanges.

Joann’s more than 800 stores and its website will continue to operate normally during the bankruptcy process, the company said, pointing to a deal it had struck with most of its shareholders for financial support.

(Copyright 2024 The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.)