Iconic arts and crafts retail chain Joann has filed for bankruptcy as inflation keeps customers at home.

The 81-year-old franchise announced Monday it has filed for Chapter 11 bankruptcy protection after securing funds to reduce its mounting debt. The company lists just over $2.4 billion in debt, with $2.26 billion in assets.

While the company’s economic outlook is dire, Joann said all 850 physical locations and the company’s online store will remain open for now.

“This 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,” Joann Chief Financial Officer Scott Sekella said in a statement.

The filing comes as Joann and other retailers struggle amid rocketing inflation. While lockdown orders and stimulus packages gave consumers disposable income and time, rampant price increases the past three years have kept buyers away from hobby stores.

• Vaughn Cockayne can be reached at vcockayne@washingtontimes.com.