NEW YORK, April 25 (Reuters) - Craft retailer Joann Inc ( JOANQ )

received a U.S. bankruptcy judge's approval on Thursday for a

restructuring that would eliminate $505 million in debt and keep

all 815 retail locations open.

U.S. Bankruptcy Judge Craig Goldblatt approved Joann's ( JOANQ )

restructuring plan at a court hearing in Wilmington, Delaware,

saying the bankruptcy was "a very good outcome" for the

company's employees, landlords, and craft suppliers.

Joann ( JOANQ ) creditors, who agreed to cancel about half of the

company's debt and take ownership of the company's

post-bankruptcy equity, unanimously voted for the restructuring.

"You've all made this very easy for me," Goldblatt said

during the hearing. "I appreciate that this degree of consensus,

especially in a case with stakes this high, isn't forged by

accident, but is the result of good and hard work."

Joann ( JOANQ ) entered Chapter 11 bankruptcy on March 18, after

negotiating a prepackaged restructuring deal with its creditors

and investment funds that owned 66% of the company's equity

shares.

The deal will result in no change for the craft retailer's

18,000 employees or the landlords for its 815 stores, the

company said. The company's existing equity shares will be wiped

out as part of the restructuring.

Joann ( JOANQ ) could emerge from bankruptcy by April 30, according to

its court filings.

Founded in 1943, the Ohio-based company is a leading

national retailer of sewing, arts and crafts, and select home

décor products. Joann ( JOANQ ) has about one-third of the U.S. market

share for sewing products sold to consumers, and the company had

overall net sales of $2.2 billion in 2023, according to its

court filings.

Joann ( JOANQ ) blamed its bankruptcy on increased competition from

online craft supply sales, rising freight costs, and a slump in

sales after the end of the COVID-19 pandemic, which temporarily

boosted demand for at-home crafting supplies, fabric, and

mask-related products.