Craft Retailer Joann Files for Chapter 11 Bankruptcy

In an expected move, craft store chain Joann has filed for bankruptcy to help the company deal with debt problems.

According a news release issued by the company, Joann has “received commitments for approximately $132 million in new financing and related financial accommodations and expects to reduce funded debt on its balance sheet by approximately $505 million.”

“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,” chief financial officer Scott Sekella said in the release.

According to a story in The Washington Post (link is free to read), Joann will become a private company after the bankruptcy proceedings, which could be complete as early as next month. The company says it currently has no plans to close stores or make any changes to its website. The release says the company, which was founded in 1943, has 829 stores in 49 states and “95 percent of which are cash flow positive.” And I literally got an email from them while I was writing this post.

(As an aside, the headline on that Post story suggests Joann’s problem is they have lost sales as people “pull back on essentials,” but if they’d ever met a crafter they would know craft supplies are always essential, we just might be buying them from different places, or buying less that we used to.)

Joann has set up a website, Joann Forward, with more details on their restructuring, including FAQs for customers, suppliers, landlords and team members. According to those pages, “this agreement is a significant step forward in addressing JOANN’s capital structure needs. It will provide us with the financial resources and flexibility necessary to deliver best-in-class product assortments and enhance the customer experience wherever they are shopping with us.”

You can also find case filings and information for claimants here.

As someone who does most of her in-person craft shopping at Joann, I’m certainly wishing them well and will update as needed with more information on the Joann bankruptcy filing.

Next Pattern:

Linen stitch is one of my favorite knitting stitch patterns that, every time I use it in a project, I think about how I don’t use it often enough.

It’s an easy stitch to make, with slip stitches done with the yarn held to the front of the work on the right/front side and to the back on the wrong/back side, which makes the strand of yarn a visible part of the pattern.

It also makes a fabric that is thick and looks kind of like a woven fabric.

I recently used linen stitch to make a double-thick pot holder, which I worked in a kind of interesting way. I didn’t want to have to do any sewing on the project, so I started it from a crochet cast on and picked up stitches from the side of the cast on to make the hot pad all in one piece in the round with the edge sealed.

This requires working on two circular needles, which is another technique I don’t use that often and am always reminded how much I like it when I do.

The combination of double thickness and the stitch pattern makes for a hot pad that’s already pretty thick, but I also added a bit of old towel to the inside before I closed up the end to make it super thick and extra protective for your surfaces.

I found the engineering challenge of this construction method to be a lot of fun, but you could also just knit it as a tube (casting on twice as many stitches as I did) and sew up the ends by hand when the knitting is done. Either way you’ve got a useful and pretty addition to your kitchen, whether you work it in a solid color, stripes or as a stash busting project will all your cotton odd balls.

You can grab the pattern over at Our Daily Craft, or check it out on Ravelry.

40+ Hot Pads You Can Sew For The Kitchen [Sewing]

A Cozy Knit to Calm Your Mind

Double Knit an Infinity Scarf

Next Pattern:

Have you read?