I realize this is an obscure name, but does anyone know what the story is with Jo-Ann's financial condition. There is a rumor that they may be in violation of their bank covenants??
Obsure, yes, but I'm very interested in what's going on with JAS.A. This company has done very, very well for me, although I've been out of retail markets for a year. The current price looks to be a real bargain. Any comments would be welcome.
Having recently visited a few Joann regular storesand then the newer ETC stores--it's hard to believethey will keep the regular ones expanding at all.Their debt is wild. They continue to close storesdown that are near new ETC stores. I don't thinkJoann's is doing as well as they appear. Mae's Fabricswas in the middle of a major renovation right beforethey went bankrupt. The fabric industry ain't whatit use to be.fabricgal
I tend to agree with you, but don't the ETC stores offer a larger variety of merchandise, closer to the mix that Michael's has...or is it just more fabric...if the larger stores appeal to a broader demo, than the store rationalization may be a good thing in the long term...unless their debt load gets them first...
The JoAnn etc stores have a wide product mix--no doubt. Though, I have asked friends who do not sewwhat that store is as we drive by and they have not aclue. Due to JOANN's varied product mix they have un-defined themselves and entered extremely competitiveareas(crafts, Home accents, art supplies, frames,floralChildren's toys). Re-defining will be very expensive--if not fatal--in my opinion.
Jo-Ann's has invested in a new inventory replenishment system which has caused huge problems since the day it was put into use. The system has never been put to the test in a company with so many SKU's. Stores are experiencing serious out-of-stock and replenishment issues with this new system. As a result, sales are suffering.
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