It starts with a closing store.

[louis-t]

46. A couple of points about Joann.

No one else put up a bid because no one else saw opportunity for profit. Private equity did because they are allowed to pay themselves out of the massive loans they saddle the business with. They don't call it 'Vulture Capitalism' for nothing.

"Declining sales" is part of the equation with Joann, Guitar Center, and Staples. Private equity relies heavily on cost cutting and it seems very little regard is given to increasing sales. It's not in their makeup. They are not experts at selling guitars, fabric or office supplies.

I went to a Joann Fabrics store a few years ago to buy 1 spool of thread. I believe the price was $8 for 1 spool of thread. I walked out. Were all of their prices high? I don't know. Maybe part of their declining sales was being overpriced.