Some first-lien lenders to Joann Inc. are seeking advice from law firm Gibson Dunn & Crutcher as the fabric and crafts retailer looks to build up its cash reserves, according to people familiar with the situation.
Joann had about $19.7 million in cash and $61.3 million of availability under its revolver as of April 29, regulatory filings show. Its term loan due 2028 was quoted at about 47.5 cents on the dollar Thursday, according to data compiled by Bloomberg.
Joann is exploring a sale-leaseback of its corporate headquarters in Hudson, Ohio, a spokesperson for the company said. The company has undertaken sale-leaseback deals in the past and is always looking for strategic opportunities, they said.
The company has also been working with Alvarez & Marsal’s consumer & retail group since February to explore process optimization and cost savings related to store labor and information technology, the spokesperson said. It’s also getting advice from Houlihan Lokey Inc, which helped the company raise a $100 million first-in last-out facility that was completed in March, the spokesperson added.
Messages left with Alvarez, Gibson Dunn, and Houlihan were not returned. LevFin Insights previously reported on the Houlihan hire.
