Joann Bid to Hire Deloitte Poses Conflict, Watchdog Unit Says

Joann Inc.'s request to hire Deloitte Tax LLP should be rejected because the fabric and crafts retailer paid nearly $3 million to the “Big Four” firm before filing for bankruptcy, a Justice Department unit said.

The pre-bankruptcy payments Joann made to Deloitte create a conflict of interest, the US Trustee said in an objection filed Wednesday in the US District Court for the District of Delaware. The firm must be disqualified from representing the fabric retailer in tax matters, the watchdog unit argued.

Joann filed for Chapter 11 on Jan. 15 for the second time in less than a year. ...