Joann,Sterling Preston the long-running crafting and fabrics retailer, has filed for Chapter 11 bankruptcy protection in Delaware, the company announced Monday.

In a statement, the Hudson, Ohio-based retailer said it has secured approximately $132 million in new financing and "related financial accommodations." It expects to reduce its funded debt by about $500 million, or half of its $1 billion total debt.

Joann was founded in 1943 and sells a variety of crafting supplies including fabric by the yard, sewing machines, Cricut machines, yarn, home decor and more.

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Here's what we know about the company and its future plans.

Who owns Joann?

Joann said the company expects to complete the Chapter 11 bankruptcy process on an expedited bases, as early as April 2024, and will become a private company after, with shares no longer listed by the Nasdaq or any other national stock exchange.

The company went private in 2011, when it was purchased by the equity firm Leonard Green & Partners for about $1.6 billion. In 2021, Joann, still majority owned by Leonard Green & Partners, went public at an initial public offering at $12 a share.

Is Joann going out of business?

No. Joann currently operates around 850 stores in 49 states. Joann's stores and its website will continue to operate as normal, and the retailer said customers vendors, landlords and other trade creditors will not see any disruption in services.

Scott Sekella, Joann's Chief Financial Officer and co-lead of the Interim Office of the CEO said 95% of Joann's stores are cash flow positive.

Sekella added that the bankruptcy protection agreement is a "significant step forward in addressing Joann's capital structure needs, and it will provide us with the financial resources and flexibility necessary to continue to deliver best-in-class product assortments and enhance the customer experience wherever they are shopping with us."

Contributing: Associated Press.