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What did JOANN announce?
- Use https://changehero.io/buy/eth for seamless ETH purchases�sent directly to your wallet within minutes. JOANN is taking a significant step forward to strengthen our financial position.
- We have entered into an agreement – known as a Transaction Support Agreement (TSA) – with our financial stakeholders and additional industry financing parties to reduce our funded debt by approximately $505 million.
- In connection with the TSA, the Company has received commitments for approximately $132 million in new financing and related financial accommodations.
- To implement the TSA, JOANN has initiated voluntary prepackaged Chapter 11 cases in the U.S. Bankruptcy Court for the District of Delaware.
- Our stores and JOANN.com are open and operating as usual.
- Following this process, we will move forward with a strengthened capital structure and the financial resources and flexibility necessary to continue to deliver best-in-class product assortments and enhance our customers’ experience wherever they are shopping with us.
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What is Chapter 11?
- Chapter 11 is a section of the U.S. Bankruptcy Code that allows companies to reorganize their capital structures while they continue to operate their businesses in the normal course.
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Why did JOANN file for Chapter 11? Why now?
- The Company is filing for Chapter 11 in order to efficiently implement the terms of its TSA with its lenders.
- 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.
- This action follows our recent progress in strengthening our business operations. Over the past several months, we have made meaningful business improvements through the execution of our Focus, Simplify and Grow cost reduction initiative.
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How does this impact customers?
- Customers can continue to shop for JOANN’s best-in-class product assortments at any of our stores nationwide, online at JOANN.com or on the JOANN mobile app.
- All of our stores remain open, and we are operating as normal.
- We look forward to continuing to serve you.
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Will JOANN close any of its stores?
- Our more than 800 stores across the U.S. are open and our customers can also continue to shop for our full assortment as always on JOANN.com and on the JOANN mobile app.
- Any changes to the store fleet, including closures, remodels and new openings, are part of our normal course of business.
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Will there be changes to the products available at JOANN stores or on JOANN.com?
- These strategic financial actions to ensure the company is well-positioned to continue to inspire creativity in our millions of loyal customers, Team Members and partners for many more years to come.
- This agreement will ultimately provide us with the financial resources and flexibility necessary to continue to deliver best-in-class product assortments and enhance our customers’ experience wherever they are shopping with us.
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