Originally Posted by cookiedal1
Originally Posted by akrogirl
Buy-outs by groups like this, only interested in grabbing as much money as they can and with no genuine interest in the business, usually don't work out well. Very sad to hear this.
I've worked in the retail industry for +40 years and buyouts like this are everyday occurences. The general public usually just doesn't hear about them. I actually have been through several of these buyouts and truthfully in almost all but one case this has proved to be a very good thing. Usually the capital provided by these companies allow for more and sometimes improved product in the stores, additional employees, remodeling, etc. I currently work for a major clothing retailer that has been in business since 1920 and has seen many changes and several changes of hands over the last 30 years. Most recently our company was was acquired by Golden Gate Capitol about 18 months ago. The only function they have or had has been to provide the financing to keep the company afloat during tough economic times. Because of their investment our company is strong and we are posting very impressive numbers, and I will see a nice bonus this quarter as a result. As far as I'm concerned Golden Gate can make as much profit as they can, because it means that I get to keep my job, which I love, at a wonderful company with a long and respected heritage. So let's hope the acquisition of JoAnns will be as positive as some of the acquisitions that I have gone through during my retail career. Sometimes, the only way for these retailers to survive at all is through a process like this. Personally I would rather see JoAnn's survive. Leonard Green also has investments in The Container Store, Petco, Davids Bridal, Neiman Marcus, Rite Aid, Whole Foods, and Aspen Dental.......some of the more recognized names.
Rite-Aid & Petco are in serious trouble here. The local Petco just closed or is in the process.
When my boss sold his food brokerage company (family owned & prosperous for several decades), it re-sold 2 years later and closed it's doors completely a year after that.
As regards Sears/K-Mart, many of those stores (both Sears & K-Mart) are in old, run-down buildings in old, run-down neighborhoods. As such, people won't shop in those stores, seriously jeopardizing Sears' ability to remain in business.
Although I blame Joann's for driving away 3 excellent local fabric stores, I'm now worried about the Joann's that is a 10-minute drive from my house; I either shop there or I have to shop on-line.