(Bloomberg) -- Joann Inc. is working with advisers to help shore up its balance sheet and ease liquidity pressures, less than a year after the fabric and crafts retailer emerged from bankruptcy, according to people with knowledge of the situation.
The privately-held chain is working with Centerview Partners and Kirkland & Ellis, said the people, who asked not to be identified discussing a private matter. A group of lenders to the company is working with Gibson Dunn & Crutcher, said other people with knowledge of the matter.
A representative for Joann declined to comment, while messages left with Centerview, Kirkland and Gibson Dunn were not returned.
Hudson, Ohio-based Joann filed for bankruptcy in March 2024, unable to sustain its debt load after a sales boom during pandemic lockdowns faded. After a speedy process, lenders took control of the company, which exited Chapter 11 with less debt and without having to close its more than 800 locations.
Just a few months later, the company began hitting up vendors for rebates and retroactive discounts as sales slumped, Bloomberg previously reported.
Joann is among a number of retailers that have struggled financially as consumers cut back on spending due to higher interest rates. The Container Store Group Inc. and Party City Holdco Inc. filed for Chapter 11 protection last month, with the latter choosing to cease operations.
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