I just saw on the news feed in our building that Jo Ann's agreed to a buy out? Anyone hear anything further??

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.

thank you for the information - was just wondering how to shift my buying habits...

Have a very Merry Christmas!

I wonder what this will mean to their products and prices?

Gads, can't anything stay the same in this world??????? Will be interesting to see the change that's going to happen!

Who else does Leonard Green, et al. own though??

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)

Maybe it will end up being a good thing :D:D:D

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.

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 sure hope so!

Actually this could be a good thing since it is going private. Only time will tell though.

Double post, sorry

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.

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.....

I havent heard anything!

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. <wave>

[quote=omak] 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????

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.!

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.

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

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.

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.

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.

From I heard/read joanns was bought out with in the past year by someone else and that is when the store started being better and making more profit. The "family" that owned and ran the company was not doing a good job and ran the company into debt. New owners helped turned it around and made company debt free. Hope the company that did the new byout does the same making the stores better. I have also seened that recently some of the snall stores in my area have gotten not stuff eventhough it makes the store seem crowded.

One news report yestereday stated that Joann's has no debt. Unusual in these days. They must be doing something right!

Thank you, Cookiedal, for an upbeat note!

Speaking about buyouts has anyone heard about Hancock's fabric being bought out by Walmart?

I'm glad your experiences have been positive. The buy-outs involving companies I have been involved with have been quite the opposite. Let's all hope for the best.

[quote=Nolee]Sorry, but that was not my quote, lol. However, I do agree that we have major, major problems ahead if we don't restore our manufacturing base.

Please remember business is what drives our economy. Cotton is a comotoy that has nearly doubled in the past yr, Of course investors are looking to cash in.
I have stopped shopping at Jo ann's because of the rude and under trained staff. I hope their customer servive will improve.

Happy Holidays to everyone!

From the NYT:
Mr. Green left Gibbons, Green to start Leonard Green & Partners in 1989. Since then, the firm has invested in 52 companies worth some $44 billion. Its current portfolio carries a heavy dose of consumer names, including the Container Store, David’s Bridal, Neiman Marcus, Sports Authority and Whole Foods Market

Still not thinking this is such a bad thing, the more I think it could be a good thing. If looked at from an investors point of view: Brand recognition, Boomers have more time on their hands to play, many of these are Ladies and Gents with income to spend, as mentioned before and seen here, little grumbles, and how things could improve this situation, for the customer. Thats an easy fix.
Probibly had to trim down in the last few years, sometimes for unseen reasons, have to show profitability,and the economys been a tough place, for retailers. Many times from whats noticed, many of these places expand by opening locations, could be, more jobs in the states and easier to find one to shop in.
We in the states are spoiled by low prices thus the imports, and that's been going on for a long time. These folks have eggs are in many baskets and should have some buying power.
One of the largest errors that have seen is computers, not people are running the show, LOL try explaining why a shopper would want 25 1/4 yd pieces, and the time/labor involved :)
So all we can do is wait and see hope for the best :)

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.

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 worked for Safeway Grocery store for years a lot of what you said sounds like my days at work needless to say the day the customer does not come first that is when the store will close everyone forgets that is where the pay check comes from Safeway are now closed so are a lot of other businesses than ran more chiefs than Indians sure hope that is not the way of JoAnns

A couple of weeks ago .... one of the Topics for discussion, on the QB was bringing the attention to ...... "Noticing how much JoAnns fabric prices have been "inching-inching" upwards to becoming very noticable to those who buy fabrics for what we do". Some of the responses for this topic resulted in statements indicating the prices of "cotton" due to shortage in in the product commodity. I'm not saying this may or may not be the reason for the pricing surgering ..... however I am now thinking, with this news of "JoAnns Buy-Out", this may just have a lot to do with their big rise in fabric prices ..... which would not surprise me a bit! The "Big Money Mongers" keep getting richer by the minute .... with you and I having to learn to live with it.

I should have been buying stock instead of fabric :cry:

My experience with corporate buy-outs has not been positive. The new owners are only interested in quick return on their investment and frequently don't manage the company to ensure it continues as a viable business. Look for more Chinese-made merchandise as that is the fastest way to make more money.