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Fabric and crafts retailer JOANN files for an estimated $400 million IPO

February 16, 2021

JOANN, a multi-channel fabric and crafts retailer with about 860 stores, filed on Tuesday with the SEC to raise up to $100 million in an initial public offering. However, this is likely a placeholder for a deal we estimate could raise up to $400 million.

Founded in 1943, JOANN operates a nationwide network of sewing, fabrics, and arts and crafts retail stores, leveraged by an online digital platform. Since 2016, the company has focused on pivoting from a traditional retail business model to becoming a multi-channel, digitally-connected provider of creative products. JOANN currently is the nation’s category leader in sewing (representing 49% of its 10/31/20 LTM Sales) controlling approximately one-third of the market share. The company also offers an extensive assortment of creative products, which at its peak, averages more than 95,000 SKUs in stores and over 245,000 SKUs online across various categories.

The Hudson, OH-based company was founded in 1943 and booked $2.6 billion in sales for the 12 months ended October 31, 2020. It plans to list on the Nasdaq under the symbol JOAN. BofA Securities, Credit Suisse, Guggenheim Securities, Barclays, Wells Fargo Securities, Piper Sandler and William Blair are the joint bookrunners on the deal. No pricing terms were disclosed.