Crafts Retailer Joann Is Planning a Bankruptcy Filing That Would Hand Keys to Lenders

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Source: Bloomberg

March 2, 2024 at 12:50 PM EST

Crafts retailer Joann Inc. is considering a bankruptcy filing as soon as next week as part of a deal that would hand control of the company to lenders while allowing it to shed expensive debt, according to people with knowledge of the matter.

The company, which sells fabric and craft supplies and has around 850 stores in the US, has been holding confidential talks with its lenders as it seeks fresh capital to bolster its cash reserves.

Discussions are ongoing and plans aren’t final, but the company is seeking to line up enough support from lenders that would allow it to exit Chapter 11 quickly in what’s known as a pre-pack filing, the people said. Chapter 11 bankruptcies allow a company to continue operating while it works out a plan to repay creditors.

A representative for Joann didn’t immediately respond to a request for comment outside of normal business hours.

Read more: https://www.bloomberg.com/news/articles/2024-03-02/crafts-chain-joann-joan-is-planning-a-bankruptcy-filing-giving-lenders-control?srnd=homepage-americas

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