Jo Ann's buyout?
12-25-2010, 05:00 PM
#71
Member
Join Date: Aug 2010
Location: Martinsville & Smith Mt. Lake, VA
Posts: 54
Here's what I found on the Leonard Green Partners web site:
http://www.leonardgreen.com/InvestmentPhilosophy.htm
MARKET LEADERS
We have a long and successful history of investing in industry leaders.
STRONG MANAGEMENT
We rely heavily on our management partners to execute the operational and strategic business plan for the companies that we invest in. Therefore, it is critical that we team with the best managements in the industry.
TRANSACTION SIZE
We have the capability of completing transactions up to $5 billion in enterprise value, with most transactions being between $500 million and $2 billion in enterprise value.
GROWTH COMPANIES
Our investment philosophy is to target cash flow positive businesses that have the ability to grow by at least 50% over a five-year period.
LONG-TERM INVESTOR
We are patient investors and have held positions in some of our portfolio companies more than ten years.
We have repeatedly demonstrated our ability to successfully originate, negotiate, consummate and realize investments in a variety of different industries and economic environments. In addition to our internal efforts, we work extensively with investment bankers, business brokers and other intermediaries to source investment opportunities.
We partner with management to enhance the value of companies through operational improvements, acquisitions, financial engineering and other strategic initiatives.
We have had significant success in structuring transactions to meet the needs of all parties involved. Types of investments that we have completed in the past include public-to-private transactions, recapitalizations of privately held businesses, growth capital, equity capital to facilitate acquisitions, turnarounds and restructuring investments and acquisitions of divisions/assets from large corporations.
http://www.leonardgreen.com/InvestmentPhilosophy.htm
MARKET LEADERS
We have a long and successful history of investing in industry leaders.
STRONG MANAGEMENT
We rely heavily on our management partners to execute the operational and strategic business plan for the companies that we invest in. Therefore, it is critical that we team with the best managements in the industry.
TRANSACTION SIZE
We have the capability of completing transactions up to $5 billion in enterprise value, with most transactions being between $500 million and $2 billion in enterprise value.
GROWTH COMPANIES
Our investment philosophy is to target cash flow positive businesses that have the ability to grow by at least 50% over a five-year period.
LONG-TERM INVESTOR
We are patient investors and have held positions in some of our portfolio companies more than ten years.
We have repeatedly demonstrated our ability to successfully originate, negotiate, consummate and realize investments in a variety of different industries and economic environments. In addition to our internal efforts, we work extensively with investment bankers, business brokers and other intermediaries to source investment opportunities.
We partner with management to enhance the value of companies through operational improvements, acquisitions, financial engineering and other strategic initiatives.
We have had significant success in structuring transactions to meet the needs of all parties involved. Types of investments that we have completed in the past include public-to-private transactions, recapitalizations of privately held businesses, growth capital, equity capital to facilitate acquisitions, turnarounds and restructuring investments and acquisitions of divisions/assets from large corporations.
12-25-2010, 05:35 PM
#72
Super Member
Join Date: Jan 2008
Location: Wyoming
Posts: 1,460
We have had a very good JoAnn shop here great employees always friendly and helpful but now I'm worried they wil become like our local Hancocks which is a good place to stay out of the employees act like they are doing us a very big favor by even being there and maybe only one person to cut and run the register so I only hope that won't be the story for JoAnns
12-25-2010, 05:59 PM
#73
Senior Member
Join Date: Aug 2010
Location: in hiding !! witness protection program LOL
Posts: 457
WEll that explains why they went out of business in Grand Junction, CO and haven't come back (we were told that the lease on the space at the mall was too expensive and they were looking for another place). Amazing for sure, who knows, maybe it will be a good thing. Now I drive either to Denver or SLC for my Jo-Ann's or shop online ..
12-26-2010, 12:21 PM
#74
Senior Member
Join Date: Oct 2010
Location: Once an Iowan, always an Iowan, but now suburban Chicagoland
Posts: 508
I am always fascinated by the comments about Walmart...NO ONE shops there, but they are the biggest retailer in the country. Someone is shopping there. We all shop price and that drives the market..China = cheap = price...we all help with that. I notice we all want the coupons and other price lowering tricks. The retailer is in business to make money..don't shop price if you want the small guy to stay around..ask any Mom & Pop store owner....likely except for LQs, most of us shop price...just saying...
12-26-2010, 02:08 PM
#75
Member
Join Date: Aug 2010
Location: Martinsville & Smith Mt. Lake, VA
Posts: 54
Originally Posted by kathidahl
I am always fascinated by the comments about Walmart...NO ONE shops there, but they are the biggest retailer in the country. Someone is shopping there. We all shop price and that drives the market..China = cheap = price...we all help with that. I notice we all want the coupons and other price lowering tricks. The retailer is in business to make money..don't shop price if you want the small guy to stay around..ask any Mom & Pop store owner....likely except for LQs, most of us shop price...just saying...
12-26-2010, 02:19 PM
#76
Senior Member
Join Date: Jan 2010
Location: Saugus, MA
Posts: 659
Originally Posted by kathidahl
I am always fascinated by the comments about Walmart...NO ONE shops there, but they are the biggest retailer in the country. Someone is shopping there. We all shop price and that drives the market..China = cheap = price...we all help with that. I notice we all want the coupons and other price lowering tricks. The retailer is in business to make money..don't shop price if you want the small guy to stay around..ask any Mom & Pop store owner....likely except for LQs, most of us shop price...just saying...
12-26-2010, 06:09 PM
#79
Senior Member
Join Date: Dec 2009
Location: South Chesterfield, Virginia
Posts: 725
Originally Posted by fabric whisperer
I have been a long-time lurker here, and this one makes me speak up! :)
I was a #2 manager at a local JAS -- I recently left because of the politics. I heard many people mention untrained staff, long lines, fabric quality, overworked staff... I am not allowed to divulge too much, but since I quit, I can finally speak up a little.
I am hoping this buyout will really rattle things in a positive way. "Corporate" mandated "making budget" everyday. They wanted us to convince customers to buy more/highercost items... BS your way in if you have to. Sorry, I had morals, and left the company. (I would not toss 5 extra skeins of yarn into that 80-y.o. lady's basket to make her buy more!)
Corporate would set a magical $ amount for our store; budget not met daily = employee hour cut to "make budget". What did this mean? Two-man coverage at smaller stores for most of the day, and we were still expected to get stock out, help customers, cut orders, run register, clean the store, setup new plan-o-grams (sectional product layouts), etc. If the standard work didn't get done during our normal shift, we managers would get written up. Nevermind that I didn't get to finish a plan-o-gram because I was busy helping customers -- my philosophy has always been "if I don't help my customer, someone else will -- without happy customers, there is no business".
Needless to say, mgmt positions are very stressful at JAS, and if nothing else, I hope this company actually will let the managers have more staff hours to that the stores can be brought back up to par. Please understand, my District Manager chewed me a new one, in front of customers, because my new floral setup didn't get completed... I didn't get it done because we were busy with customers until 5 minutes before close... Needless to say, I chose to help the customers!
I agree the fabric quality has declined, many fabrics they are now selling are from China -- thin, damaged bolts upon delivery, I have sewn for over 30 years, and I wouldn't buy them. But they do also have the better quality stuff, you just have to know where to look. They still sell RJR, Hoffman, Springs / VIP, Kona, many great names. I was the merchandising manager and took my job & store very seriously, I was constantly complimented on good selection / well stocked / clean store while I was in charge. I am a scrapbooker, painter, sewer, quilter, crocheter, musician, and 4th generation artist. My store now looks like doodoo since I left, the new merch mgr just wanted the higher paycheck, she doesn't care about aesthetics or what the customer wants.
I hope it will be a good thing. Oh, BTW the "no debt thing" -- they got out of debt by making us run medium-sized stores with only 2 employees/shift for a long time. Meanwhile, corporate was building a "workout center" across from HQ for millions... Um, we are working ourselves into heart attacks while you're spending the cash-flow on a new rec center? That just wasn't cool IMHO.
I was a #2 manager at a local JAS -- I recently left because of the politics. I heard many people mention untrained staff, long lines, fabric quality, overworked staff... I am not allowed to divulge too much, but since I quit, I can finally speak up a little.
I am hoping this buyout will really rattle things in a positive way. "Corporate" mandated "making budget" everyday. They wanted us to convince customers to buy more/highercost items... BS your way in if you have to. Sorry, I had morals, and left the company. (I would not toss 5 extra skeins of yarn into that 80-y.o. lady's basket to make her buy more!)
Corporate would set a magical $ amount for our store; budget not met daily = employee hour cut to "make budget". What did this mean? Two-man coverage at smaller stores for most of the day, and we were still expected to get stock out, help customers, cut orders, run register, clean the store, setup new plan-o-grams (sectional product layouts), etc. If the standard work didn't get done during our normal shift, we managers would get written up. Nevermind that I didn't get to finish a plan-o-gram because I was busy helping customers -- my philosophy has always been "if I don't help my customer, someone else will -- without happy customers, there is no business".
Needless to say, mgmt positions are very stressful at JAS, and if nothing else, I hope this company actually will let the managers have more staff hours to that the stores can be brought back up to par. Please understand, my District Manager chewed me a new one, in front of customers, because my new floral setup didn't get completed... I didn't get it done because we were busy with customers until 5 minutes before close... Needless to say, I chose to help the customers!
I agree the fabric quality has declined, many fabrics they are now selling are from China -- thin, damaged bolts upon delivery, I have sewn for over 30 years, and I wouldn't buy them. But they do also have the better quality stuff, you just have to know where to look. They still sell RJR, Hoffman, Springs / VIP, Kona, many great names. I was the merchandising manager and took my job & store very seriously, I was constantly complimented on good selection / well stocked / clean store while I was in charge. I am a scrapbooker, painter, sewer, quilter, crocheter, musician, and 4th generation artist. My store now looks like doodoo since I left, the new merch mgr just wanted the higher paycheck, she doesn't care about aesthetics or what the customer wants.
I hope it will be a good thing. Oh, BTW the "no debt thing" -- they got out of debt by making us run medium-sized stores with only 2 employees/shift for a long time. Meanwhile, corporate was building a "workout center" across from HQ for millions... Um, we are working ourselves into heart attacks while you're spending the cash-flow on a new rec center? That just wasn't cool IMHO.
I stood at the foot of Wall St NYC with Alan Rosskam (the family who owned the company) when they went public as JAS...
I ran most of my stores with a cashier (the store manager) and a cutter (me)....
Every thing you state above is the god's honest truth....on 9-13-2001, I had to call my District manager to tell him I was closing the store, whether he liked it or not, because we were receiving bomb threats on the two bridges within miles from us, while we could see and smell the smoke from the twin towers, while we were comforting customers who had escaped the carnage, and he wanted to write me up....(thankfully Mr. Rosskam had some sense and apologized to me)
Anything going better than that would be an improvement...
12-26-2010, 06:15 PM
#80
Senior Member
Join Date: Dec 2009
Location: South Chesterfield, Virginia
Posts: 725
Originally Posted by Gael
Originally Posted by kathidahl
I am always fascinated by the comments about Walmart...NO ONE shops there, but they are the biggest retailer in the country. Someone is shopping there. We all shop price and that drives the market..China = cheap = price...we all help with that. I notice we all want the coupons and other price lowering tricks. The retailer is in business to make money..don't shop price if you want the small guy to stay around..ask any Mom & Pop store owner....likely except for LQs, most of us shop price...just saying...
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