Is Beloved Retailer With 41 Michigan Locations Next to Disappear?
Michigan crafters please make sure your glue guns are off and safely stored because the following news may be upsetting. The financial gurus at TheStreet.com report that a crafting superstore facing serious financial issues.
Some stores are more than just bricks, mortar, and inventory. They're gathering places for people with similar interests. Hunters have never met a stranger in a sporting goods store, neither have tech enthusiasts in Best Buy.
Craft stores are a special breed of store. What makes these kinds of stores unique is the parking lot full of spouses sitting in idling cars waiting for their other half to exit with either a cartload of materials or a small bag. Both trips take an average of 8 hours (okay, maybe it feels that long).
Michigan Crafters May Need to Find a New Supplier
Though company officials have yet to use the word 'bankruptcy', JoAnn Fabrics has run into some serious financial issues according to TheStreet.com:
...in it's (JoAnn Fabrics) most recent quarterly SEC filing, but it's running low on cash, has made significant layoffs, and runs the risk of being delisted from NASDAQ because it has not remained in compliance with listing requirements.
Being delisted would make things more difficult but, the biggest issue the Cleveland, Ohio based craft retailer faces is the lack of cash on hand to fund their operations. TheStreet.com reports that JoAnn Fabrics has $19.1 million and a debt eclipsing $1 billion. This is the same issue faced by now-defunct chains like Bed Bath & Beyond.
Despite the debt-to-income ratio, the company remains positive it can hunker down and survive. To date, they are keeping up with the bills and looking to cut $200 million in operational costs.
Personally, I hope they make it. I don't want to have to find another place to buy a cow flower pot.