Contrary to the headline's claim, Joann Fabrics is not going out of business entirely. The craft retailer is restructuring under Chapter 11 bankruptcy and plans to close some unprofitable stores. The company aims to emerge from bankruptcy with a stronger financial footing and a more sustainable store footprint. The restructuring will involve financial stakeholders and includes a commitment for $50 million in new financing.
Shein and Temu exploit a US customs rule called the "de minimis" threshold, which exempts packages valued under $800 from import duties and taxes. This allows them to ship massive quantities of low-priced goods directly to consumers without the added costs normally associated with international trade. This practice, combined with potentially undervalued shipments, is under increasing scrutiny from US lawmakers who argue it gives Chinese retailers an unfair advantage, hurts American businesses, and facilitates the import of counterfeit or unsafe products. Proposed legislation seeks to close this loophole and level the playing field for domestic retailers.
HN commenters discuss the potential abuse of the de minimis threshold by Shein and Temu, allowing them to avoid import duties and taxes. Some argue that this gives these companies an unfair advantage over US businesses and hurts American jobs. Others point out that this "loophole" is not new, has existed for decades, and is used by many international retailers. Some also suggest the focus should be on simplifying the US tax code and reducing tariffs rather than targeting specific companies. The impact on consumer prices and potential benefits of lower prices are also debated, with some commenters suggesting that addressing the loophole could raise prices. There is skepticism about whether Congress will effectively close the loophole due to lobbying from various interests. Some also highlight the complexity of international trade and customs procedures.
Trevor Traynor's photo series "Newsstands, 2012-2019" documents the disappearing presence of New York City newsstands over seven years. The photos capture the diverse and often cluttered character of these small businesses, showcasing their role as a microcosm of city life. The project subtly highlights the changing urban landscape and the decline of print media as many of the featured stands eventually vanish, leaving behind empty sidewalks. The series serves as a visual elegy for a fading piece of New York's cultural fabric.
Hacker News users generally praised the photography and nostalgic feel of the "Newsstands" project. Several commenters shared personal anecdotes about their experiences with newsstands, highlighting their role as community hubs and lamenting their decline. Some discussed the changing media landscape and the impact of digital news on print publications, which contributed to the disappearance of these businesses. A few users pointed out technical aspects of the photographs, like the consistent framing and lighting, while others appreciated the project's focus on a specific, vanishing piece of urban life. A couple of New Yorkers offered insights into the continued existence (albeit diminished) of newsstands in the city, noting their evolution towards selling snacks and beverages.
Summary of Comments ( 30 )
https://news.ycombinator.com/item?id=43173341
HN commenters discuss the surprising nature of Joann's closure, given its apparent popularity and the enduring hobby of crafting. Several suggest the "going out of business" phrasing is misleading, pointing to the Chapter 11 bankruptcy filing as a restructuring move rather than a complete shutdown. Some speculate about the reasons for the financial trouble, including poor inventory management, high rent costs, competition from online retailers like Amazon and Etsy, and the cyclical nature of crafting trends. Others lament the potential loss of a valuable resource for crafters and the impact on local communities. A few express skepticism about the long-term viability of brick-and-mortar craft stores in the current retail landscape.
The Hacker News post titled "Fabric and craft retailer Joann to go out of business, close all of its stores" generated several comments discussing the news, primarily focused on clarifying the headline's inaccuracy and speculating on the reasons behind Joann's financial struggles.
Several commenters immediately pointed out that the linked AP News article states Joann is not going out of business entirely, but rather filing for Chapter 11 bankruptcy, which allows for restructuring and potential continuation of operations. This correction was a dominant theme in the early comments.
Some users expressed surprise at Joann's financial troubles, citing the apparent popularity of crafting, especially during the pandemic lockdowns. They questioned whether the rise of online marketplaces like Etsy, offering similar handmade goods, might have contributed to Joann's struggles. Others speculated about changing demographics, wondering if younger generations are less interested in traditional crafts.
The increasing cost of goods and inflation were also brought up as potential factors impacting Joann's profitability. One commenter mentioned the specific example of fabric prices increasing substantially.
Several users shared anecdotal experiences with Joann stores, describing them as often cluttered, poorly organized, and offering subpar customer service. These observations suggested that operational issues, in addition to broader economic factors, might be playing a role in the company's financial difficulties.
One commenter suggested that Joann's reliance on couponing might be a sign of unsustainable business practices, training customers to wait for discounts rather than paying full price.
While the prevailing sentiment acknowledged the challenges facing brick-and-mortar retail, several commenters expressed hope that Joann could successfully restructure and emerge from bankruptcy. Some also noted the importance of such stores for local crafting communities.
There was some discussion regarding the private equity ownership of Joann, with some suggesting that leveraged buyouts and subsequent debt burden could have contributed to the company's financial woes.
Finally, a few commenters discussed alternative craft retailers, highlighting the competitive landscape and the potential for other players to absorb some of Joann's market share.