05:14 AM EDT, 03/18/2024 (MT Newswires) -- Joann ( JOAN ) said Monday it has launched voluntary prepackaged Chapter 11 cases in the US with the aim of completing the process as soon as late April and emerging as a private company.

The specialty retailer said it has agreed with most of its financial stakeholders and additional financiers for about $132 million in financing and expects a reduction of its funded debt by approximately $505 million.

The stakeholders also agreed to a six-month extension on certain credit facilities after the company emerges from the court-supervised process, it said.

The company and certain of its affiliates started the Chapter 11 cases in the US Bankruptcy Court for the District of Delaware. Its stores and website remain open and the company continues to operate normally, it said.