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Thread: Jo Ann's buyout?

  1. #1
    Super Member butterflies5518's Avatar
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    I just saw on the news feed in our building that Jo Ann's agreed to a buy out? Anyone hear anything further??

  2. #2
    Super Member katier825's Avatar
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    Companies: Jo-Ann Stores (JAS) said Thursday it was being acquired by private-equity firm Leonard Green & Partners for $1.6 billion, or $61 per share in cash. The stock surged by 33% in early trading.

  3. #3
    Super Member butterflies5518's Avatar
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    thank you for the information - was just wondering how to shift my buying habits...

    Have a very Merry Christmas!

  4. #4
    Super Member SuziC's Avatar
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    I wonder what this will mean to their products and prices?

  5. #5
    Super Member amandasgramma's Avatar
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    Gads, can't anything stay the same in this world??????? Will be interesting to see the change that's going to happen!

  6. #6
    Super Member Rebecca VLQ's Avatar
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    Who else does Leonard Green, et al. own though??

  7. #7
    Super Member butterflies5518's Avatar
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    this explains the current frustration of the condition and stocking of the stores in the last 6 months - it can only get better (I hope)

  8. #8
    Power Poster amma's Avatar
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    Maybe it will end up being a good thing :D:D:D

  9. #9
    Super Member Momma_K's Avatar
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    Quote Originally Posted by butterflies5518
    I just saw on the news feed in our building that Jo Ann's agreed to a buy out? Anyone hear anything further??
    I Googled it!

    Shopping’s Buyout Shop of the Moment
    By DEALBOOK
    Retailers have been prominent buyout targets again this year, and one private equity firm has been particularly busy: Leonard Green & Partners.

    Leonard Green’s $1.6 billion deal for Jo-Ann Stores on Thursday follows fast on the heels of the $3 billion deal for J. Crew by the firm and TPG Capital.

    Leonard Green, a Los Angeles-based buyout shop, has been a buyer in 15 transactions so far this year, according to Capital IQ. The J. Crew buyout is its biggest. Earlier in the year, the firm had been linked to speculation swirling around a buyout offer for BJ’s Wholesale Club.

    Leonard Green has a long history in investing in retail and consumer brands. The firm’s namesake founder was one of the pioneers in the buyout business.

    Leonard Green and Edward Gibbons, who were both executives of McDonnell & Company, a brokerage firm, founded Gibbons, Green, van Amerongen, a New York firm that specialized in management-led buyouts, in 1969. Among its deals was the $450 million acquisition of Foodmaker from Ralston Purina in 1985 and the $520 million buyout of Budget Rent-a-Car from Transamerica in 1986.

    Mr. Green left the firm in 1989 to establish his own Los Angeles-based shop, Leonard Green & Partners. The firm has invested in 52 companies with a total value of $44 billion since 1989. Mr. Green, who was also a major patron of opera in Los Angeles, died in 2002 at the age of 68.

    Today, the firm says it has $9 billion in equity capital under management. Its three managing partners, John G. Danhakl, Peter J. Nolan and Jonathan Sokoloff, have worked together since 1986, according to the firm’s Web site.

    Leonard Green says it is able to complete deals of as much as $5 billion in enterprise value but that most transactions will be $500 million to $2 billion.

    “Our investment philosophy is to target cash flow positive businesses that have the ability to grow by at least 50 percent over a five-year period,” it says.

  10. #10
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    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.

  11. #11
    Super Member sewjoyce's Avatar
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    Quote Originally Posted by amma
    Maybe it will end up being a good thing :D:D:D
    I sure hope so!

  12. #12
    Member husband-of-a-quilter's Avatar
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    Actually this could be a good thing since it is going private. Only time will tell though.

  13. #13
    Member husband-of-a-quilter's Avatar
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    Double post, sorry

  14. #14
    Super Member C.Cal Quilt Girl's Avatar
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    Wow that's very interesting... may have some good results.

    Hopefully will help with the whole, so much on sale can't use the coupon. Are generally profitable retailers, all we can do is watch and see.

  15. #15
    Junior Member merridancer's Avatar
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    Just remember that in any buy-out, the new owners have to have enough profit to pay off the debts that come with the buyout.....

  16. #16
    Power Poster CarrieAnne's Avatar
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    I havent heard anything!

  17. #17
    Super Member Nolee's Avatar
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    We had a Sears repairman come out about 3 years ago and told us that nothing but trouble came out of the buyout by KMart of the appliance giant. He had worked there 30 years and we were his last job.....he was getting out. He said that the employees suffer because so many benefits are taken away but also that the customers suffer because management lets things go to pot in a financial sense.

    We can only be positive and hope this one is different.

  18. #18
    Super Member omak's Avatar
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    Quote 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.
    Pretty much the way I see it. Yeah - - there is money going through there today, but dollars to donuts, the people buying the store doesn't know WHY it is making money ... when the fabric looks like the cat drug it in because they were taking the cheapest they could get - - well, you get the picture.
    For some reason, a lot of people with money don't have any brains - - consistently kill the goose that lays the golden egg.
    Business sense, like integrity, is not inherited - - one either has it or one had better learn it, cuz without it - - one is not nothin'.
    Okay! I do believe in plots, and I am thinking that the combination of no manufacturing to speak of in the US of almost any product + the fact that foreign companies own more companies (capital) than US companies cannot bode well for the American citizen.

  19. #19
    Super Member Nolee's Avatar
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    [quote=omak]
    Quote Originally Posted by akrogirl
    I do believe in plots, and I am thinking that the combination of no manufacturing to speak of in the US of almost any product + the fact that foreign companies own more companies (capital) than US companies cannot bode well for the American citizen.
    And it appears that those in charge of our government don't have the same logical sense that you do in seeing that coming, Akrogirl!! Frog in the frying pan and the water's ready to boil????

  20. #20
    cosyquilter's Avatar
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    When all the jobs have gone overseas, so we here are all jobless, where are the markets for those goods? One point to going overseas is extremely low wages, so the people who are making the goods don't have the money to purchase them. I was highly amused at some gov't official went to India to develops markets there: most tech support for computers is now in India.!

  21. #21
    Member cookiedal1's Avatar
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    Quote 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.

  22. #22
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    Well, this may be good. I had heard that Joann's was associated with Walmart - ugh!

  23. #23
    Super Member Midwestmary's Avatar
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    Change can be hard...I still miss places like Northwest Fabrics and mail ordering from LeeWards...anyone remember Lee Wards? Our local Joann's is small and crowded - I do hope this will be a good thing for the employees and consumers alike. Cookiedal1 - thanks for your perspective from inside the retailing industry.

  24. #24
    Super Member Tinabodina's Avatar
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    Oh yes, I remember Lee Wards. Change is going on everywhere in the retail business. Let's hope JoAnn's is not one of those that will disapear in our future. Let's also hope that the quality of the fabric gets better. I don't think it could go to much lower.

  25. #25
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    Things are always changing,good or bad we seem to go with the flow.I buy most of my fabric at Hobby Lobby & they are also changing a lot.

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