Beloved crafts retailer files for Chapter 11 bankruptcy

Joann Fabrics

Pictured is a sign outside of a former Joann Fabrics store in Carlisle, Pa. (Daniel Urie, PennLive, File)

A beloved crafts retail chain has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware.

JoAnn Inc. has entered into a transaction support agreement with a majority of its financial stakeholders and additional industry financing parties. The company 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.

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