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Assistant to the Professor@darinself.bsky.social |
Just got a news alert saying Joann Fabrics is going into bankruptcy due to decreasing demand. Article fails to say that it was purchased by a private equity firm a while ago and recently went public and is carrying $2.4 billion in debt. Private equity strikes again.
100 replies 962 reposts 2836 likes
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@playon.bsky.social
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Apparently though the stores will stay open. Another consumer product ruined by PE is the Instant Pot pressure cooker.
0 replies 0 reposts 1 likes
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endi / cc
@xcouloir.bsky.social
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the finance vampires claim another victim
0 replies 1 reposts 7 likes
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A Shiny Blue Thing Collected By A Bird
@shinybluething.bsky.social
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Private Equity driving functional retail stores into bankruptcy to pay off the leveraged buyouts is like butchering the goose that laid golden eggs.
0 replies 0 reposts 2 likes
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Patrick Ogle
@paogle.bsky.social
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Our "economy" is a scam.
0 replies 0 reposts 0 likes
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That Ryan Guy, no, the other one.
@rdewalt.bsky.social
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Bain Capital killing off another company with another "Leveraged Buyout?" They killed Toys R Us and Kay Bee Toys , among so many others.
1 replies 0 reposts 3 likes
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N Sims
@copyrightlibn.bsky.social
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Right? 100% not due to decreasing demand.
3 replies 1 reposts 171 likes
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BenRad
@benrad.bsky.social
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Ah cool, no more fabric stores in my area.
0 replies 0 reposts 1 likes
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Barrington Kenilworth IV
@barringtonk.bsky.social
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This is a corporate raiders buy a thriving business, strip it for parts, declare bankruptcy and pocket the spoils scenario. Mitt Romney has a lot of experience doing that. I wonder if there are mom and pop stores that can fill the void? Maybe that opportunity could offer some kind of silver lining?
0 replies 1 reposts 6 likes
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BeccaM
@beccam.bsky.social
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A capitalism story in 4 parts: 1. Private Equity firm buys a niche company a relatively fixed but loyal customer base 2. Lards up company with debt, cuts quality, sales begin to drop 3. PE says "Revenues should be 10x higher than when we bought you!" 4. PE finishes looting the company, liquidates
3 replies 41 reposts 225 likes
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Ferrabee
@ferrabee.bsky.social
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23,000 employees. That’s quite a cost in jobs. Who if anyone will be held to account?
3 replies 1 reposts 7 likes
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Mary is Merry
@mmchol.bsky.social
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They won't be happy until they've destroyed everything. Because they're pro-business. 😡
0 replies 1 reposts 1 likes
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Boxy
@publiccallbox.bsky.social
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Weird. This doesn't sound good for consumers but that's impossible in a capitalism.
0 replies 3 reposts 30 likes
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@kbethany.bsky.social
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It’s insane to me that there’s always a bank willing to make these loans that just about every person with a modicum of sense can see is a bad idea. Often made based on slick ad packets about GROWTH that has literally no basis in the market & then they call the lack of this growth decreasing demand.
0 replies 0 reposts 1 likes
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Lauowolf
@lauowolf.bsky.social
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Damn
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Just Melissa (she/her)
@pnwmelissa.bsky.social
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Shit!
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Heidi McDonald
@hmcd.bsky.social
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Well I mean also it sold very overpriced crap quality supplies. If I’m gonna spend $12/yard on fabric, it’s going to be soft (not starchy) cottons with no print errors, no industrial stains, and doesn’t smell funky. eQuilter dot com is FAR SUPERIOR and donates a portion of each purchase to charity.
2 replies 0 reposts 0 likes
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marythetrainer🦋🐢🤷🏻♀️😏🌎
@marythetrainer.bsky.social
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Oh man! I need some quilting fabric! What am I supposed to do if they close? But yeah… I mean, no one else will care.
3 replies 0 reposts 16 likes
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@bflmouse.bsky.social
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Private equity aka vulture capitalists.
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Kate, Queen of the Squirrels
@pavlovcat.bsky.social
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They did stock buy backs a few years ago and then cut a ton of staff so that most stores are in Dollar Generalesque shape. I would bet craft hobbies are at an all time high.
4 replies 4 reposts 207 likes
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Tahar 🇺🇦 🇵🇸 🇺🇳 🇪🇺
@rochaa.bsky.social
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This news will sadden my wife.
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ShannonInSea
@shannoninsea.bsky.social
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Jesus! I love Joann Fabrics! I don’t think there is anyone out there who is a duplicate of what they offer - so much variety of crafting supplies.
0 replies 0 reposts 1 likes
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Pretty Fly for a Cat Guy (warning: unreliable narrator)
@majima.club
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I work at JoAnn and I am CONSTANTLY busy, people are buying literal shopping carts full of yarn and fabric, they have a booming cosplay section, and customers constantly tell us how much they prefer shopping at us than the others. I stfg our demand increases monthly.
1 replies 0 reposts 7 likes
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Mr. Morbid
@mrmorbid.bsky.social
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Something happened to Toys R Us & other similar companies. If only the trustbusting government of old still existed to fix that 😩
1 replies 1 reposts 21 likes
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L
@noisybrooklyn1.bsky.social
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and here I thought I was keeping them in business by buying so much yarn from them. 😂
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Ms. Jen
@msjen.bsky.social
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And during the private equity era, there fabric stock was awful. I find that small independent quilting stores had better choice.
1 replies 0 reposts 5 likes
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@holir.bsky.social
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RUCK! Also, can we make Private Equity illegal?
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3 Dog Dad
@3dogdad.bsky.social
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I am in JoAnn's a lot and it's always busy. Contrary to some of the comments above the store seems clean and organized. This ain't no BB&B.
0 replies 0 reposts 2 likes
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Nicholas Weaver
@ncweaver.skerry-tech.com
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Who is so foolish as to loan to private equity outfits, since "load up on debt, cash out huge dividends etc, go bankrupt" seems to be the way these outfits make money?
1 replies 0 reposts 10 likes
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long cool woman in a white coat
@pyslexicdharmacist.bsky.social
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Not too long after my local fabric store closed, too. Luckily we have others, so I don't buy much from Jo-Ann's. My sister briefly worked for them and hated it.
0 replies 0 reposts 0 likes
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Patrick
@comedypat4.bsky.social
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The parasites strike again. And this should have been in the lede.
0 replies 0 reposts 3 likes
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@fruitysheep.bsky.social
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The stores are tragically empty and in disarray, even the locations that used to be the best. Crafts are booming. Huge crochet and macrame and cosplay resurgence and Joann is always low on yarn and novelty fabrics.
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kristy
@kristysf.bsky.social
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PE does to our commerce what the aliens in Independence Day were trying to do to our planet.
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Jim Mashek
@jmashek.bsky.social
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Every time a chain store goes bankrupt I check whether they were owned by private equity. Usually it's the case.
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Frickin Dude..
@frickin-dude.bsky.social
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It's called a "Bust Out" if you're a monster. It's called a leverage buyout if you're a this side of the legal line scumbag.
worldtraining.net/bustout.html
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Lee Frost | The Sinsemillier
@thesinsemillier.bsky.social
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Last time I went to a Joann's, whoever was working there just wasn't around and no customers could get help. We waited about half an hour before leaving. Private equity destroys everything!
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@topperskid.bsky.social
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So many companies have been destroyed by private equity- it should be front page news, but it’s buried!
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JoWonderland
@jowonderland.bsky.social
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That. There truly is no reason for JoAnn Fabrics and Crafts to be going into bankruptcy.
1 replies 0 reposts 131 likes
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My Chihuahua has seen things
@bkbirge.bsky.social
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Finance bro gonna finance bro.
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Stephen Kiskamp
@skiskamp.bsky.social
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I thought my wife was single-handedly keeping them in business!
0 replies 0 reposts 1 likes
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Brianna Nicole Pail
@pailbn.bsky.social
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The last two decades of “tech” businesses with no actual product and the liquidation of any value and assets for short-term gain has convinced me that there will be no businesses in the next few years. I’m obviously over exaggerating but… am I really?
0 replies 1 reposts 8 likes
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Becca's Mullet
@beccasmullet.bsky.social
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Eff them! Eff them all the way around the block! And then bury private equity and recycle it as compost!
0 replies 2 reposts 23 likes
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Becky W
@bwire.bsky.social
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Private equity destroyed Kmart and Sears, too.
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Hyperlexic
@hyperlexic.bsky.social
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0 replies 5 reposts 17 likes
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nora-hakase (野良博士)
@nora-hakase.bsky.social
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I guess lenders end up being made whole enough that they keep lending to PE firms to do this shit. Wild to think about
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@clockdivider.bsky.social
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I read today that Starrett, the precision measurement tool maker, got bought by PE. A tragedy.
toolguyd.com/starrett-acq...
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Luis Bermudez
@luisbermudez.bsky.social
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How much of that debt is from huge bonus payouts to the C-suite?
0 replies 0 reposts 1 likes
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msilverstar (fandom, fanfic, fan fic, Lotrips, MCU movies & RPF)
@msilverstar.bsky.social
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Private Equity is why we can't have nice things.
0 replies 0 reposts 2 likes
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Spider
@vaspider.gay
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The store @urbanprole.bsky.social and I go to in order to buy stuff for @nerdykeppie.bsky.social is so packed and understaffed all of the time that we've started buying some of our stuff online instead.
Plus they've switched to these weird name brand fabrics for a bunch of stuff and I'm like...
1 replies 0 reposts 2 likes
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@ljevans.bsky.social
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And they're going to emerge from bankruptcy in about a month, no stores will be closed, no employees will lose their jobs, and God willing the private equity a**holes will be gone.
0 replies 0 reposts 0 likes
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Wilhelm Arcturus
@wilhelm2451.bsky.social
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In the quest for shareholder value some shareholders get more value than others… or, as they say, the house always wins.
0 replies 0 reposts 0 likes
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🐇 Amber (she/bun) 🔞 18+ ONLY
@sapphire.mewmews.gay
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private equity firms need to be fucking illegal, this happens over and over again
0 replies 1 reposts 25 likes
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@flatline42.bsky.social
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Figures. I picked Joann every time over "loot & scoot evangelical" Hobby Lobby. Be sad to see them go. I hate vulture capitalism.
1 replies 0 reposts 5 likes
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Aaron Bourque
@afbourque.bsky.social
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0 replies 0 reposts 0 likes
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Warhammerchick
@celticdragon1.bsky.social
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Fucking hell. Strip mined another decent company
0 replies 0 reposts 0 likes
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Paula
@dentonitis.bsky.social
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Oh no
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Bill Stewart
@billstewart.bsky.social
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And they were probably purchased with money at a much lower interest rate than today. My local Joann's went out of business even after surviving landlord/real-estate-developer games with their building. (Best replacement I've found so far is Walmart, though Michael's craft stores have some stuff.)
0 replies 0 reposts 0 likes
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Gwendolyn Ann Smith
@gwenners.bsky.social
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Doesn’t sound like a demand issue…
0 replies 0 reposts 0 likes
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Maia
@maiainmi.bsky.social
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Whenever I hear of a company in financial straits, I assume the reason is vulture capitalism.
0 replies 0 reposts 4 likes
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Christopher May
@chrismay.bsky.social
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Damn. PE is sucking the life out of everything.
0 replies 0 reposts 8 likes
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MizzleThizzle
@mizzlethizzle.bsky.social
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Welcome to late stage capitalism
0 replies 0 reposts 1 likes
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Kip Williams sort of
@kipwilliams.bsky.social
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I expect that the demand was not increasing fast enough to suit a stupidly optimistic model.
0 replies 0 reposts 2 likes
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Coyote
@goldencoyote.bsky.social
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"Decreasing demand" my ASS. Someone needs to just burn the PE firms already, they don't do SHIT but destroy businesses.
0 replies 2 reposts 27 likes
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Stig & The Grumble
@stigirish.bsky.social
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I went to get my semi-annual supply of face wash that is the only thing I found that prevents The Zit from appearing. "sold The Body Shop to private equity firm Aurelius Group in November" “Effective today, March 1, 2024, The Body Shop US Limited has ceased operations,”
0 replies 0 reposts 0 likes
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Sekhi, Booper of Snoots 🏳️🌈
@sekhithefops.bsky.social
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Dear gods this will break my mother's heart. She's been a quilter longer than I've been alive. ;-;
1 replies 0 reposts 21 likes
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Jillbles
@jillbles.bsky.social
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Yup, just before they got rid of most of the, y'know, actual craft supplies, & converted to selling a ton of home decor.
2 replies 1 reposts 6 likes
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AJL
@guiltypanacea.bsky.social
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Goddammit. I still refuse to buy knitting supplies from the place that buys stolen artifacts from ISIS and won't let its employees get free birth control
0 replies 0 reposts 3 likes
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Mary50shadesofWTF
@kapdoll.bsky.social
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Oh man. I love Joann’s dang it.
0 replies 0 reposts 0 likes
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Susan Ballinger
@peculiarsusan.bsky.social
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Well this sucks.
0 replies 0 reposts 0 likes
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@ericblade.bsky.social
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... except they weren't "purchased by a private equity firm", the terms of their reorganization require them to undo their public offering, and it's "only" 1.2billion in debt, not 2.4. They over expanded due to their covid bump, and are paying for it now.
1 replies 0 reposts 0 likes
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𝕊𝕒𝕣𝕒𝕙 𝕂𝕚𝕥𝕖🪁 🇵🇸
@sarahkite.bsky.social
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Well shit
0 replies 0 reposts 1 likes
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Six canning jars in a trenchcoat 𓅃
@lids.bsky.social
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Private equity destroys everything it touches.
0 replies 0 reposts 2 likes
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SJSCentralTX
@sjscentraltx.bsky.social
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Joann’s was the last surviving chain at which to buy fabric and other sewing supplies. Plenty of people are still sewing. Alterations are still a thing. And creating a dress or jacket of your own is a joy. I would not ever buy fabric online: texture, weight, drape are impossible to judge.
1 replies 0 reposts 1 likes
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jingle
@jinglecat.bsky.social
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im wondering if co-ops could compete
0 replies 0 reposts 0 likes
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Jim Kosmicki
@jkosmicki.bsky.social
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And it will be blamed on online sellers or the power of Jeebus helping Hobby Lobby triumph - or both
0 replies 1 reposts 7 likes
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Elizabeth le Fen
@fenbeast.bsky.social
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An acquaintance & I went to the local JoAnn Fabrics store just this weekend and both of us were saying to each other, "We have to stay strong and not blow hundreds of dollars on yarn/fabric we don't need." "Decreasing demand" my ass. Private equity is a bloated tick that sucks dry good businesses.
0 replies 0 reposts 13 likes
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Nikki Jayne
@nikkijayne.bsky.social
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Can someone ELI5 ‘private equity firms’? I’ve seen this is happening a lot in the UK as well and just wanted to get a deeper grasp on it.
0 replies 0 reposts 0 likes
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Mamalinda84
@mamalinda84.bsky.social
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Just like Sears right?
0 replies 0 reposts 0 likes
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Ellz
@ellz.bsky.social
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A few months ago went to Joann's. It was torn up, mising much stock and had become a junky Michael's for the most part. Could not wait to leave
0 replies 0 reposts 1 likes
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@jfc2024.bsky.social
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So the PE firm and the banks take the loss. Good. Let Joanne start from scratch with a clean balance sheet.
1 replies 0 reposts 0 likes
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AGuyinNJ
@aguyinnj.bsky.social
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Damnit. Lots of good materials and knowledgeable staff there
0 replies 0 reposts 1 likes
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Julia
@sdrose.bsky.social
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Fuck private equity. Sorry, not sorry.
0 replies 0 reposts 2 likes
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@readeradrift.bsky.social
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ugh they ruined fairway a beloved neighborhood store they ruin everything drain everything dry
0 replies 0 reposts 0 likes
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@processanalyzer.bsky.social
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Totally MAGA Qanon store though. FJB and Trump flags out front. Worse than Hobby Lobby.
4 replies 0 reposts 0 likes
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Aunt Rove
@auntrove.bsky.social
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Bummer. I preferred Hancock's, and even more so some non-franchise stores that have gone out of business, but we've been buying from them for years. Thanks for the info.
0 replies 0 reposts 0 likes
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Rumpole the Brief
@rumpole-brief.bsky.social
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I want the articles that say "Here's what PE psid to buy it, here's the debt they added, here's how much PE extracted in dividends and interest and service fees. And here are the layoffs. And now here the bankruptcy financials..." I want that for every PE bankruptcy filing story, front and center.
0 replies 1 reposts 4 likes
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@jpshipley.bsky.social
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[two brunchlords announcing layoffs on a company zoom] listen, bitches just aren’t sewing the way they used to
0 replies 0 reposts 0 likes
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Casey Wagner
@cannibal.holiday
[ View ] |
Vulture capitalism at work?
0 replies 0 reposts 1 likes
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Shirty
@whogivesashirt.bsky.social
[ View ] |
It’s disturbing that all their targets seem to be creative outlets, whether as finished goods like blogs and websites or as raw materials suppliers. What a gray and boring world they want to leave us.
0 replies 0 reposts 3 likes
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Fruney
@fruney.bsky.social
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Loot and scoot.
0 replies 0 reposts 0 likes
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Neer
@dragoneer.bsky.social
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Reminds me of my childhood with Mitt Romney and Bain Capital taking over KB Toys and driving it into the ground because it was more profitable than letting it exist.
1 replies 1 reposts 11 likes
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NP-Complete (aka Nellification)
@np-complete.bsky.social
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If they close stores, then it will leave Michael's (which really doesn't do fabrics) and Hobby Lobby (which I avoid, and which has only a small fabric section that I remember) as sources for fabrics, outside of boutique quilting and haberdashery supply stores. Where to get basic-but-pretty cottons?
13 replies 1 reposts 92 likes
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Andy Barnett
@hof1991.bsky.social
[ View ] |
Tom the dancing bug on private equity. www.gocomics.com/tomthedancin...
0 replies 0 reposts 1 likes
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Don't ask
@good-byekitty.bsky.social
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It would help if they didn't play the coupon game and just price things normally with sales.
0 replies 0 reposts 0 likes
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Mark
@marksimploding.bsky.social
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I wish I could pay myself to destroy my other self while getting paid to do both.
0 replies 0 reposts 1 likes
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North Easton
@north-easton.bsky.social
[ View ] |
Jo-Ann's got Toys'r'Us'd?
1 replies 0 reposts 0 likes
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Kathy Applebaum
@kathyapplebaum.bsky.social
[ View ] |
To be fair, Joann Fabrics was working hard on becoming an awful place to shop well before 2021. PE just gave them a big push.
0 replies 0 reposts 2 likes
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Fourteen Kittens in a Trenchcoat
@kittensinacoat.bsky.social
[ View ] |
huh, weird
0 replies 1 reposts 10 likes
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Max Berger
@maxberger.bsky.social
[ View ] |
private equity did the same thing to American business it did to Chelsea and Man U
2 replies 0 reposts 38 likes