Joann closing nine North Texas stores amid bankruptcy proceedings | wfaa.com
https://www.wfaa.com/article/money/business/joann-closing-hundreds-stores-nationwide-list-north-texas-stores-closures-dallas/287-8f322bed-db17-4c9c-89b0-3d3d1d03c92eOpen linkView original on thelemmy.club
Anytime I see these headlines I look for the buyout from private equity/investment firm etc in the past. Yep... A 1.6 billion dollar price tag in 2010.
https://archive.nytimes.com/dealbook.nytimes.com/2010/12/23/leonard-green-offers-1-6-billion-for-jo-ann-stores/
They went from record profits to in trouble by 2020. When Covid pushed back bankruptcy a few years. Hey look the amount that debt that they still owe around 1 billion.
https://www.usatoday.com/story/money/2025/02/12/joann-fabrics-closing-stores-bankruptcy/78459650007/
Now there is no direct paper trail but a financially stable company that is loaded up with 1.6 billion in debt from a leveraged buyout.... Guess what happens in a few years. 20,000 employees get fucked over for greed.
Yup, and hedge funds strategically short the company stock down, knowing this is going to happen, and once the stock is cellar-boxed and delisted they don't even pay taxes on their ill-gotten gains.
Late stage Capitolisim.
I just found out from my cosplay buddy. This is really sad for the people in those states. I hate shopping online for clothing material.