Crafts Retailer Joann Goes Bankrupt as Consumers Retreat (2)

Fabric and crafts retailer Joann Inc. filed for bankruptcy, unable to sustain its debt load after a sales boom during pandemic lockdowns faded.

The Hudson, Ohio-based chain will be delisted after the bankruptcy proceedings and be privately owned by “certain of its lenders and industry parties,” according to a company statement released as it filed a Chapter 11 petition in Delaware early Monday. The filing listed liabilities of $1 billion to $10 billion.

Joann’s lenders struck a restructuring deal to provide about $132 million in new financing that would help the company reduce debt by about $505 million, the firm ...