What's Going On With Fabric Retailer Joann Shares Today?
Portfolio Pulse from Shivani Kumaresan
Joann Inc (NASDAQ:JOAN), a fabric and crafts retailer, has initiated voluntary prepackaged Chapter 11 cases to restructure its debt. The company has entered into a Transaction Support Agreement with key stakeholders, securing about $132 million in new financing and aiming to reduce its funded debt by approximately $505 million. Joann expects to complete the restructuring by late April 2024, with its stores and website operating as normal. Shares surged 64.9% to $0.38 in premarket trading.
March 18, 2024 | 10:51 am
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Joann Inc has initiated Chapter 11 restructuring, secured $132 million in new financing, and plans to reduce debt by $505 million. Shares jumped 64.9% to $0.38 in premarket trading.
The positive market reaction and significant premarket share price increase are likely due to investor optimism about Joann's financial restructuring and debt reduction plans. The securing of new financing and the commitment to maintain normal operations during the restructuring process may also contribute to a positive outlook for the company's future.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100