(TNS) — A major U.S. crafts retailer, based in Hudson, Ohio, could be headed for bankruptcy soon.

Joann Inc. is considering filing Chapter 11 bankruptcy, which could happen as soon as next week, as part of a deal that would give control of the company to lenders while allowing the company to shed its debt, Bloomberg reported.

The retailer, which sells craft supplies and fabric, has about 815 stores across 49 states, per ScrapeHero, and has been making an effort to trim costs and employees. The company has been in confidential conversations with its lenders, aiming for fresh capital to bolster cash reserves.

So, what exactly would a Chapter 11 bankruptcy mean for the company?

The purpose of filing is to get a retailer’s financial house in order while attempting to restructure debt and save the core business operations from tanking. For customers, it’ll continue operating while formulating a plan to repay creditors.

Part of the restructuring comes with an effort to trim costs. This could mean more store closings are in store for those locations that are underperforming or are more costly.

Even though discussions are ongoing and plans aren’t final, the retailer is looking to get enough support from lenders that would allow it to exit Chapter 11 through a pre-pack filing.

Joann has been around for about 80 years and is the No. 1 employer in Hudson with 979 employees as of last January.

The company went public in 1969 and grew through a series of acquisitions over time. In 2011, it became private again and went back to public trading in 2021, the outlet reported.