Joann Fabrics and Crafts, a company headquartered in Hudson, Ohio, has initiated bankruptcy proceedings as part of its financial restructuring efforts. According to documents acquired by NBC News, the retailer filed for Chapter 11 bankruptcy protection on March 18. However, it's important to note that despite this legal action, Joann intends to continue its operations.

Will Joann stores remain open following the Chapter 11 bankruptcy filing?

In a corresponding press statement, the company clarified that its network of over 800 stores and its online platform would continue to operate without interruption.

"The continuity of services for customers, vendors, landlords, and other trade creditors will be maintained," the release emphasized. "Joann remains steadfast in its commitment to delivering high-quality products and services that ignite creativity in its customers."

Established in 1943, Joann also announced in its release that it had secured around $132 million in new financing and associated financial arrangements. Furthermore, it anticipates a reduction of approximately $505 million in funded debt on its balance sheet.

"We are grateful for the support shown by our financial and industry partners in reaching this agreement, and for their confidence in our capability to drive positive transformations within our business," stated Chris DiTullio, the chief customer officer and co-lead of the interim office of the CEO, as mentioned in the press release.

"We take immense pride in being the unparalleled destination for sewists, quilters, crocheters, crafters, and other creative enthusiasts over the past eight decades. Witnessing the passion and involvement of our millions of customers and team members is truly inspiring."

According to Joann's release, the company anticipates emerging from the bankruptcy process as soon as late April.

"Upon completion of this procedure, it is expected that JOANN will transition into a privately held company, under the ownership of certain lenders and industry stakeholders, and its shares will no longer be traded on Nasdaq or any other national stock exchange," the statement further explained.