Craft Store With 32 New York Stores Files for Bankruptcy

One of the biggest names in crafts and sewing has filed for Chapter 11 bankruptcy leaving fans wondering if any of its New York stores will close.

If you like to sew or enjoy making crafts you probably spent some time walking around an area of Joann Fabric and Crafts store. So news that they've filed for bankruptcy protection might come as a surprise but according to numerous sources, they filed court papers on Monday, March 18th.

Joann Fabric and Crafts Files for Bankruptcy

The big-name craft store Joann with over 800 stores across the country and 32 locations in New York has filed for Chapter 11 bankruptcy in Ohio on Monday in an effort to protect the company while they enter into a new agreement to reduce debt according to a company press release.

The new agreement will allow the company to receive $132 Million in new capital and related financial accommodations from financial and industry stakeholders.

The filing will allow Joann, best known for selling craft supplies, home décor and sewing supplies to continue to operate while it takes steps to strengthen its financial position so they can continue to deliver "best-in-class product assortments and enhance the customer experience" according to their website.

Will Any Joann Stores Close?

None of the 800 stores are expected to close and online shopping is expected to be uninterrupted during the bankruptcy process according to WJET. The filing also stated that any obligations the company has to "employees, vendors, landlords, and other trade creditors will be paid or otherwise satisfied in full."

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Joann currently has 32 stores in New York with three locations in the Hudson Valley including stores in Kingston, Peekskill, and one in the Poughkeepsie Plaza on Route 9 in Poughkeepsie, New York.