Consumer

Retailer Joann Considers Second Bankruptcy Filing in a Year

  • Company also exploring options including sale of the business
  • Lenders requested Joann set aside reserves to cover losses
A Joann store in El Cerrito, California.Photographer: David Paul Morris/Bloomberg
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Joann Inc., the fabric and crafts retailer that emerged from Chapter 11 less than a year ago, is considering filing for bankruptcy again as it runs out of cash, according to people with knowledge of the matter.

A final decision hasn’t been made, but a filing could happen as soon as this month, said the people, who asked not to be identified because the discussions are private. The company is also exploring other options including a potential sale and raising additional capital, they added.