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Crafts retailer Joann Inc. (NASDAQ:JOAN) dropped 5.6% in after hours trading amid a report that the company is having talks with lenders as it attempts to boost its cash reserves.
A cash infusion from lenders may help the company avoid a potential bankruptcy filing, according to a Bloomberg report on Wednesday, which cited people familiar with the matter. Talks are ongoing and terms of a deal haven’t been completed.
A representative for Joann didn’t respond to Bloomberg requests for comment.
Joann (JOAN) shares plunged 35% on Dec. 5 after the crafts retailer reported Q3 sales that missed estimates and a wider-than-expected adjusted loss. Joann’s stock has plummeted 83% over the past year.
Joann’s (JOAN) talks with lenders come after some other retailers have also been struggling. Bloomberg reported last week that Big Lots (BIG) is looking for new financing as it tries to deal with dwindling liquidity and Children’s Place (PLCE) is working with advisors to obtain new financing. The WSJ reported on Monday that apparel retailer Express (EXPR) is preparing for a debt restructuring.
