Popular craft store files for bankruptcy [Video]

BUFFALO, N.Y. — Sewing and fabrics retailer Joann Inc. has filed for bankruptcy and has entered into an agreement to reduce its debt.

The Hudson, Ohio-based company announced today that it filed for Chapter 11 bankruptcy protection. Joann (NASDAQ: JOAN) also unveiled a new transaction support agreement that secures $132 million in new financing.

The funds are expected to cut the retailer’s funded debt on its balance sheet by about $505 million. The company’s long-term net debt was about $1.15 billion as of end of October, according to its financial filings.